Ukraine: Daily Briefing
August 15, 2017, 6 PM Kyiv time
Ukrainian Army training exercises. Photo – Ukraine’s Ministry of Defence
1. Russian Invasion of Ukraine
The General Staff of Ukraine’s Armed Forces reported at 12:30 PM Kyiv time that in the last 24 hours, no Ukrainian soldiers were killed and eight Ukrainian soldiers were wounded in action. Towards Donetsk, Russian-terrorist forces shelled Ukrainian positions near Avdiivka with mortars. Russian-terrorist forces fired on Ukrainian positions near Kamyanka, Luhanske village and other locations on the Donetsk sector of the front. Towards Mariupol, Russian-terrorist forces shelled Ukrainian positions near Krasnohorivka, Maryinka and Vodyane with mortars. Russian-terrorist forces shelled residential areas of Maryinka. Russian-terrorist forces fired on Ukrainian positions at Shyrokyne, Hnutove and other locations on the Mariupol sector of the front. Towards Luhansk, Russian-terrorist fired on Ukrainian positions at Krymske and Zolote.
2. Ukraine GDP grows 2.4% in 2nd quarter
Ukraine’s GDP grew by 2.4% in the 2nd quarter of 2017, compared to the 2nd quarter of 2016. Ukraine’s GDP grew 0.6% in the 2nd quarter of 2017, compared to the 1st quarter of 2017, according to data released by the State Statistics Service of Ukraine.
The Ministry of Economic Development and Trade stated that the “the key prerequisite for growth is economic reform, improvement in business confidence and growth in consumer activity with an increase in wages. In addition, a positive impact was provided by external market conditions, namely – growth in commodity prices, particularly metals, iron ore and grain, as well as a high level of construction activity at industrial and infrastructure facilities. […] The Ministry of Economic Development and Trade forecasts GDP growth at 1.8-2% for 2017.”
3. EBRD provides local currency credit line in Ukraine to support local SMEs, boost domestic leasing
The European Bank for Reconstruction and Development (EBRD) reported, “The EBRD is providing a local currency loan in Ukraine in the amount of UAH 514,000,000 (US$ 20 million equivalent) to OTP Leasing (OTPL).
The funds will help OTPL to expand its operations in local currency to small and medium-sized enterprises (SMEs) across the country and to manage its balance-sheet currency structure. The use of local currency will give great comfort to potential borrowers, who will not be exposed to foreign exchange risks.
OTP Leasing, a limited liability company incorporated in Ukraine and beneficially owned by OTP Bank plc of Hungary, has been a well-established market player for almost a decade. The EBRD loan will contribute to OTPL’s development strategy, designed to diversify its customer base and target smaller agricultural producers with land banks exceeding 5,000 hectares.
Sevki Acuner, EBRD Director for Ukraine, said: ‘Ukraine’s leasing market has contracted severely in recent years and at the moment it represents less than 1 per cent of GDP, compared with up to 14 per cent of GDP in neighbouring countries such as the Czech Republic, Hungary or Poland. Therefore the loan agreement with OTP Leasing is very important, not only financially but also in terms of market confidence and development. The project promotes local currency lending in Ukraine, which should strengthen, in particular, the market position and competitiveness of domestic small and medium-sized companies.'”