Tim Ash comments on Ukraine’s banking sector issues

2017/5/14 17:10:01

“The state has probably put around 10-12% of GDP in now since Euromaidan to clean up the banking sector and the challenge of the next NBU governor and the SDIF and MOF is ensuring as much of that can be paid back to the state…”


 

 

 

 

 

 

 

 

 

 

 

 

LONDON, May 14, 2017 (UBO) – Responding to the increasingly questionable situation around the NBU bail-out of commercial banks in Ukraine, Bluebay Asset Management emerging market economist Timothy Ash offered the following comments at 12:48 today [Reach original of article to which Ash responds at http://www.ukrainebusiness.com.ua/news/18612.html ]:

 

In further reflection I actually think this piece asks the wrong questions. It's not a question of looking back, but looking forward and how the bank clean-up programme is completed, and how the state gets as much of its money back from bailing out the banks. The state has probably put around 10-12% of GDP in now since Euromaidan to clean up the banking sector and the challenge of the next NBU governor and the SDIF and MOF is ensuring as much of that can be paid back to the borrowers to now state owned banks - many connected parties - pay back loans and are not allowed to walk away. The IFIs and civil society movements, plus newly created anti-corruption agencies need keep the pressure on herein.

 

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** Please note that any views expressed herein are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions. The views expressed do not reflect the opinions of all portfolio managers at BlueBay, or the views of the firm as a whole. In addition, these conclusions are speculative in nature, may not come to pass and are not intended to predict the future of any specific investment. No representation or warranty can be given with respect to the accuracy or completeness of the information. Charts and graphs provided herein are for illustrative purposes only.”

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