Financial News and Economical Crisis

turned to big banks with a request to buy Government Bonds amounting to about 2 billion UAH. Yulia Tymoshenko received a total of about 800 million UAH. Financial experts say that could redeem the paper for an amount of 2 billion UAH. If they were offered the same rate of return.

Meeting of Prime Minister with the leaders of the largest banks held at the National Bank of Ukraine last week. The initiator of the meeting was very Yulia Vladimirovna, who has asked the National Bank head Volodymyr Stelmakh help the Government with the filling of the budget. According to participants of the meeting, it ran “quite ridiculous”. “Apparently, Prime Minister hoped that the meeting will be to the head of the NBU, but he asked her to preside over a meeting and tell us about your request. It was evident that Yulia Vladimirovna slightly ill at ease, - says one of the participants in the meeting .- She obviously did not want to ask Stelmakh us for help after the shaft critics who attacked the system in 2008-2009.. ”

According to bankers, Ms Tymoshenko told a fairly weak indicators of budget execution. They say the economy is still suffering the consequences of the crisis, many businesses ended the year with a loss, so the upfront payment of taxes on profits are very small. Premier commended the size of the state budget deficit for January-February 7 billion UAH.

“We were asked to support the Government and to buy state bonds for six months at a rate of 21% per annum, - says one of the participants in the meeting .- Premier would receive 4,6 billion UAH. but bankers are reported to acquire securities in the amount of about 2 billion UAH.. It was made by the National Bank kvazigarantom the deal by promising to buy Government Bonds from the banks for five days before the date of their maturity, if the government will be difficult with the implementation of debt.

At issue Prime Minister, why bankers do not want to buy in such circumstances, the whole amount of his proposed six-month Government Bonds, financiers complained about the lack of a meeting of Privatbank, which the National Bank refinancing extended for a year on 3,5 billion UAH., moreover, that 20% of assets bank - is liquidity.

However, on the basis of the results of last week of the auction, the Finance Ministry managed to collect only 0.8 out of 2.1 billion UAH. that bankers have promised to the government. In particular, the paper purchased Ukrsotsbank, UkrSibbank, Raiffeisen Bank Aval “and” Citibank (Ukraine). The latter overestimated the rate of return on paper - instead of the stipulated 21% per annum, the bank put up the proposal with the rate of 22,5%.

According to one banker, the consent of the Ministry of Finance on the profitability of such securities could cause a failure of other financial establishments from the transaction. “I can not explain its Head-office, why I buy paper with 21% yield, while the same paper can yield 22,5% per annum,” - said the banker. However, he does not discard the possibility that the Government Bonds on 1,2 billion UAH. TAP will be the Ministry of Finance as soon as possible, “if they are guaranteed equal conditions for all banks”.

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