by
RUSSIAN EMIRATES
94
ÍÅÄÂÈÆÈÌÎÑÒÜ, ÁÈÇÍÅÑ, ÈÍÂÅÑÒÈÖÈÈ
principal underwriters and investors and issuing
ownbonds;
• Increaseof activities of institutional investors
(non-governmental funds and joint investment
institutions);
• Creationof a rating system for Ukrainian
issuers. Itwas introducedby theCabinet of
Ministers of Ukraine inApril, 2004;
• Establishment of “Credit-Rating”– the first
rating agencyonUkrainianmarket. It sets credit
ratings of Ukrainian issuers and their debenture
bonds.
The improvement ofmacroeconomic
situation inUkraine alsowas a factor that
stimulatedpositivedevelopments on the stock
market. Since2000, GDPhas beengrowing
steadily, inflation rates havegonedown, home
consumptionhas beengrowinggradually and
therehas been apositivebalanceof payment.
Actual incomeof thepopulationhas increased,
Ukrainianbanks have increased the credits issued
to theeconomic entities andmonetary indices
have improved. All these factors had apositive
influenceon the stockmarket development
dynamics: since2000, themarket annual growth
averaged70%. In2005, the volume reached
403.8billionhryvnias.
Last year showed thehighest volumeof
direct foreign investments inUkraine’s history.
As a result of this, overall amount of such
investment as of theearly 2006, equaled almost
16.4billiondollars. Themost attractive industries
for foreign investors inUkraine are: wholesale
trade,metallurgy, food industry and agricultural
products processing. Themost attractive regions
areKyiv andDnipropetrovs’k andOdessa regions.
Over thepast fewyears, national issuers
(representedby thestateandbyenterprises)worked
activelyon foreigncreditmarkets.Thisbecame
possibledue to the improvementofUkrainian
securities ratingandstable forecast for such rating
possiblechangespreparedby international rating
agencies. FirstUkrainiancompany that reachedout
to the foreigncreditsmarketbymeansofbond
debentures issuewasKyivstarGSM–oneof the
majoroperatorsof cellularcommunications,which
issued itsownEuropeanbonds for$160million.
Ukrainianbanks issueEurobonds thus
allowing theactiveborrowingof foreign-country
loans. In2005, using theEurobonds, thebanks
borrowed$675million incredit funds (in2004,
with thehelpof Eurobonds and syndicatedcredits
–$413million, and in2003–$182.5million). Kyiv,
theCapital CityofUkraine, just in2005, received
a foreign loan in theamount of $250milliondue
to the issueof EurobondsbyKyivMunicipal State
Administration for the termof 10 years, at 8%
annual interest rate. This year, PublicCorporation
Metallurgy Industrial ComplexAzovstal,which
ÓÊÐÀÈÍÀ - ÎÀÝ
THE IMPROVEMENTOF
MACROECONOMICSITUATION
INUKRAINEALSOWASA
FACTORTHATSTIMULATED
POSITIVEDEVELOPMENTSON
THESTOCKMARKET. LAST
YEARSHOWEDTHEHIGHEST
VOLUMEOFDIRECTFOREIGN
INVESTMENTS INUKRAINE’S
HISTORY. ASARESULTOFTHIS,
OVERALLAMOUNTOFSUCH
INVESTMENTASOFTHEEARLY
2006, EQUALEDALMOST16.4
BILLIONDOLLARS
