On December 14, Ukraine secured its third tranche of financing amounting to approximately USD 900mn from the IMF. This brings Ukraine’s total funding raised under the IMF program to around USD 4.5bn out of the envisaged USD 15.6bn. In total, international partners have provided USD 38.4bn this year, including nearly USD 18bn from the EU and USD 11bn from the US. Additionally, significant assistance of USD 1.8bn and USD 1.5bn came from Canada and Japan, respectively.
Looking ahead to the period from 2024 to 2027, Ukraine anticipates receiving direct budgetary support from the EU totaling EUR 50bn. The government considers the “principled decision” to create the Ukrainian Fund for this amount have already been achieved. However, EU leaders have scheduled an extraordinary summit in January to address this matter, as Hungarian Prime Minister Viktor Orbán has prevented the adoption of the corresponding EU budget decision this month.
The interbank exchange rate for the dollar increased by 27 kopecks to 37.05 UAH/USD. Meanwhile, the cash rate only rose by 10 kopecks to 37.50 UAH/USD. Considering that the average difference between the purchase and sale price of cash dollars is 50 kopecks, it can be asserted that the current disparity between the non-cash and cash rates is insignificant. Forecasts indicate that the average interbank dollar rate will be in the range of 39 to 40 UAH/USD in 2024.
In the Ukrainian stock market, there was a mixed dynamic. Quotes for MHP (MHPC) continued to decline to a new low since 2009. Over the week, the price of MHP fell by 3.5% to USD 2.99 per share (MCap of USD 320mn). Ferrexpo’s (FXPO) shares experienced a 7.3% increase to GBp 76.1 (MCap of USD 578mn). An unexpected 18% upward rebound to PLN 8.51 occurred for Kernel’s (KER) shares (MCap of USD 631mn). Most likely, the main shareholder of Kernel started buying shares on the exchange, leading to a sharp increase in quotations. The majority shareholder needs to acquire less than 1% to bring his stake to 95%.
POLITICS AND ECONOMICS
- US Wants Ukraine to Focus on Territorial Defense in 2024; Aid Package Expected in January
- National Bank Lowers Key Rate from 16% to 15% Delivering Fourth Rate Cut in 2023 From the Level of 25%
The National Bank of Ukraine has opened a special fundraising account to support the Armed Forces of Ukraine. Please find more at the National Bank’s official website under the link below:
www.bank.gov.ua
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