EAVEX Weekly

April 10, 2017

Ukraine’s small domestic equity market extended its impressive 2017 rally last week as disbursement of the fourth loan tranche from the IMF was a clearly positive event for the country. The econometric analysis prepared by the Washington-based institution once again pointed out that reducing corruption could substantially contribute to speeding up the Ukrainian economy. If the country is unable to lower corruption, per capita GDP will still be only about 30% of the EU average in 2040, the IMF estimated in a grandiose long-term forecast. Separately, the IMF commented that the previous week’s UK court ruling repudiating Kyiv’s position on Russia’s lawsuit regarding USD 3bn in overdue bond debt will have no effect on the IMF program. The UX index picked up 2.9% to close at 1072 points. Raiffeisen Bank Aval (BAVL) added 5.0% to 25.20 kopecks, with the stock now having doubled in value since the start of the year thanks largely to the bank’s plan to pay a 5.90-kopeck dividend. UkrNafta (UNA