...TAKE HOME ASSIGNMENT Ukraine Module: Please add Faculty Name Faculty: Please add Faculty Name Due Date: January 5, 2015 Macro Economics: Ukraine 1. Executive summary Geo-political tensions have pushed Ukraine into a deep crisis. Real GDP is in sharp decline, expected to contract by 8% in 2014 with a continued retrenchment in 2015. The conflict in the East has disrupted economic activity, which in its turn made the collection of taxes difficult. The exports have declined and the overall consumer and investor confidence fell significantly. At the same time weak national revenue performance, rising expenditure to tackle the crisis along with a growing Naftogaz deficit make fiscal adjustment more challenging. Ukraine government has allowed a free floating exchange rate resulting in a 50% devaluation of the currency (figure 4). Import gas prices are high and energy efficiency of the national industries is poor. The balance of payments pressure remains high due to large external debt refinancing needs, low FDI and limited access to external financing. This means that challenges are ahead of Ukraine with deteriorating relations with Russia, a weak banking sector, low FX reserves, large debt repayments needs (for the next 2 years) together with constrained domestic consumption altogether pose risks and affect prospects for recovery. Positive factors for Ukraine are as follows: (i) the strong external support for Ukraine ($27bn in the next 2 years), (ii) authorities...
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...Ukraine is a relatively young independent country that had to build up its own sovereignty, its social, political and economical life under a strong influence of communist totalitarian system of the former USSR. Nowadays, Ukraine is in a very difficult situation, particularly in the context of recent presidential elections. Ukrainian economy is really in a big trouble because what we have observed since 1991 when this country got its independence may be characterized by one word – stagnation, though more radical people would call it agony because the rate of real unemployment is very high, foreign investments are insignificant particularly in comparison with its neighbors such as Poland, Czech Republic, or Hungary, bank system is just starting to develop and is far from international standards, industry and agriculture develops but do not achieve even the level of 1990, the same may be said about GNP, finally, the country is regionally unequally divided into industrial East and Center and mainly agricultural West and North. On analyzing the situation I strongly recommend to the Ukrainian government to start changes and the earlier it is done the better for Ukraine. Firstly, I want to underline that to overcome all the obstacles to prosperity of Ukraine we have to know what are causes of economical problems. I think that the principle cause is the lack of radicalism of Ukrainian reforms and not only economical but administrative and political as well. Practically, all reforms...
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...CONTENT PREFACE …………………………………………………………………….…..…3 CHAPTER 1 Theoretical basics of mergers and acquisitions processes………..........5 1.1. The economic substance of M&A ………………………………………………5 1.2. Financing M&A…………………………………………………………………9 1.3. Valuation matters……………………………………………………………….11 1.4. M&A failure……………………………………………………………………13 CHAPTER 2 International M&A experience..............................................................16 2.2. The M&A practice in European countries…………………………………….16 2.3. The M&A experience in USA…………………………………………………22 CHAPTER 3 Mergers and acquisitions in Ukraine.....................................................32 3.2. Legislature of Ukraine in the sphere of M&A………………………………...32 3.3. M&A of Ukrainian corporations…………………………………………........33 3.4. M&A of Ukrainian banks……………………………………………………..40 CONCLUSION...........................................................................................................46 REFERENCES...........................….………………………………………………...48 PREFACE Strategic factor in the success of companies on global markets and increasing international competitiveness is the growth their market value. Current global trends show an increasing relevance of financial management, which deals with the dynamics of cost and capital structure of companies, institutions of financial flows. Achieve business objectives may be able through...
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...In particular, employee participation and empowerment and job redesign, including team based production systems, extensive employee training and performance contingent incentive compensation produce the value of human resource management practices and systems. The aim of this research is to examine how is human resource management processes is being performed in Ukrainian and Turkish...
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...IBO Final Exam Winter 2011 (Yuriy Pylypchuk) 2. FTPR & FFPR – Ukraine & Poland | Economic size | 2010 | 2009 | 2008 | 2007 | | | | | USD | % | USD | % | USD | % | USD | | | Ukraine | Nominal GDP | 137 000 000 000,00 | 0,042 | 131 477 927 063,34 | -0,151 | 154 862 104 903,82 | 0,024 | 151 232 524 320,13 | FTPR | 0,729 | Poland | Nominal GDP | 469 000 000 000,00 | 0,038 | 451 830 443 159,92 | 0,016 | 444 715 003 110,16 | 0,051 | 423 135 112 378,84 | FTPR | 0,732 | | External position USD | | | | Total assets | Total liabilities | Summarizing | | | Ukraine | 90 318 000 000,00 | 117 017 000 000,00 | 207 335 000 000,00 | FFPR | 1,371 | Poland | 156 877 000 000,00 | 398 212 000 000,00 | 555 089 000 000,00 | FFPR | 1,312 | In accordance to Rabobank annual report I have calculate needed ratios. Ukraine - FTPR = 0,729; FFPR = 1,371 Poland - FTPR = 0,732; FFPR = 1,312 The indicator FTPR displays the amount of balance imports and exports to GDP. Having analyzed the calculated parameters can be noted that in times of crisis to develop the country with almost the same pace, FFTP shows that the growth of Ukraine and Poland in the international arena is virtually identical at 0,73. Before the crisis, Ukraine kept a clear and logical foreign policy and external balance followed the import and export. But as we have developed historically in Ukraine are all accustomed to trade, rather than invest in new areas, increasing the production of domestic...
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...Challenges Facing FIAT to Enter Ukraine Opportunities and Challenges Facing FIAT to Enter Ukraine Report Team: NO.10 Italy Class period: Tuesday 8, 9 Team Member Zhou Wen Duan Jiaqi Han qingxiu English Name Cookie Todd May Student Number 41006044 41032003 41029021 Contact Information 289192701@qq.com 917686559@qq.com 304593546@qq.com 1 Opportunities and Challenges Facing FIAT to Enter Ukraine Executive summary The report is going to analysis the opportunities and challenges facing FIAT to enter Ukraine automobile market. We first identify the strength and weakness of global strategy of Fiat with the SWOT analysis (Appendix 1) to find out entering Ukraine could contribute to Fiat’s global strategy, and then we evaluate the investment potential in Ukraine with PEST analysis (Appendix 2) to find out that Ukraine government is encouraging foreign investment by incentive policy and regulation, moreover, the automobile market in Ukraine is large. However, under the condition of financial crisis, the trade protectionism is on the rise in Ukraine, making the existing competition fiercer than before. To solve the problem, we suggest Fiat to export light vehicle and manufacture installation kit by joint venture to minimize risk and mitigate challenges. Besides, the board should pay attention to balancing the relationship among local government, local employees and management layer. 2 Opportunities and Challenges Facing FIAT to Enter Ukraine Content Ⅰ. Introduction ...
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...VTB Bank (Russian: ОАО Банк ВТБ, former Vneshtorgbank) is one of the leading universal banks of Russia. VTB Bank and its subsidiaries form a leading Russian financial group – VTB Group, offering a wide range of banking services and products in Russia, CIS, Europe, Asia, Africa, and the U.S. The Group’s largest subsidiaries in Russia are VTB24, Bank of Moscow, and TransCreditBank. Type | Public company | Traded as | MCX: VTBR LSE: VTBR | Industry | Banking, Financial services | Founded | 1990 | Headquarters | Federation Tower West , 12, Presnenskaya emb., Moscow, Russia | Area served | Russia, CIS, Europe, Asia, Africa, U.S. | Key people | Andrey L. Kostin (President and Chairman of the Management Board)Sergey K. Dubinin (Chairman of the Supervisory Council) | Products | Financial Services | Revenue | RUB 525.1 billion (30 September 2012 IFRS Results)[1] | Net income | RUB 60.2 billion (30 September 2012 IFRS Results)[1] | Total assets | RUB 7 184.7 billion (30 September 2012 IFRS Results)[1] | Total equity | RUB 672.2 billion (30 September 2012 IFRS Results)[1] | Owner(s) | The Russian Federation state (75.5% shares) | Employees | 76 528 (30 September 2012 IFRS Results)[1] | Divisions | VTB Capital | Subsidiaries | Bank of Moscow | Chairman of the Management Board Valery M. Telegin (1990–1993) Yuri V. Poletayev (1993–1996) Dmitry V. Tulin (1996–1999) Yuri V. Ponomaryov (1999–2002) Andrey L. Kostin (from 2002) Shareholders The main shareholder...
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...expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or inclusion in any information storage and retrieval system, without the prior written permission of the World Bank. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint, please send a request with complete information to the Copyright Clearance Center, Inc, 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978750-8400, fax 978-750-4470, www.copyright.com All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail pubrights@worldbank.org ISBN 0-8213-5038-2 Library of Congress Cataloging-in-Publication Data...
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...Current Account Imbalance of the Kyrgyz Republic Name Institutional Affiliation Current Account Imbalance of the Kyrgyz Republic A country’s current account is a critical indicator of the economy’s health and delineates the difference between a nation’s investments and savings. Being the sum of the balance of trade, net current transfers and remittances from abroad, a current account has the potential to indicate to investors that whether a country relies on borrowing to funds its operations or lends to others for the same reasons. The objective of this paper is to critically evaluate the current account imbalances of the Kyrgyz Republic, identify the economic contributors to the imbalances and recommend corrective measures through policy development and implementation. The current account deficit can largely be described as a significant percent of a depressed level of the Gross Domestic Product (GDP). Since the deficit emerged early after the country’s transition into an independent state from the Soviet Union, it is largely attributed to the alarming situation where the capital inflows in the country were larger at the beginning of the transition but have since leveled off. In addition, the high demands for imports and exposure of the country to external shocks are among the factors that have caused the country’s foreign exchange reserves and foreign direct investments to declines. These result in a balance of payment crisis that are further exacerbated by the financial...
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...the French Provisional Government founded the Comptoir national d'escompte de Paris (CEP) in response to the financial shock caused by the revolution of February 1848. The upheaval destroyed the old credit system, which was already struggling to provide sufficient capital to meet the demands of the railway boom and the resulting growth of industry. The CEP grew steadily in France and overseas, although in 1889 there was a crisis in which it was temporarily placed in receivership. Separately on April 18, 1932 the French Government replaced Banque nationale de crédit (BNC) which failed as a result of the 1930s recession with the new bank Banque nationale pour le commerce et l'industrie (BNCI). The former banks headquarter and staff were used to create BNCI with fresh capital of 100 millions francs. The bank initially grew rapidly through absorbing a number a regional banks that got into financial trouble. After the Second World War it continued to grow steadily. It grew its retail business in France and its commercial business overseas in the French colonial empire. After the end of the Second World War, the French State decided to "put banks and credit to work for national reconstruction". René Pleven, then Minister of Finance, launched a massive reorganization of the banking industry. A law passed on 2 December 1945 and which went into effect on the 1 January 1946 Nationalized the four leading French retail banks: Banque nationale pour le commerce et l'industrie (BNCI), Comptoir...
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...| | |PROFESSIONAL EXPERIENCE |Credit Program Officer, Millennium Challenge Account-Armenia Program, Foreign Financing Projects Management Center State | | |Institution, Ministry of Finance of the Republic of Armenia, Yerevan, Armenia, February 2012 – current | | |Overall management, oversight and evaluation of implementation of the MCA-Armenia | | |Credit Program (total portfolio 8.5 mln USD), preparation of the reports, memos and other papers on the progress of the Project | | |Review reports, other deliverables and implementation documents developed and submitted by the MCA-Armenia Credit Program | | |implementer | | |Monitoring and analysis of rural financial market development trends, study of the policies for the Rural Financial Market | | |development | | |Consultations and coordination with stakeholders and donors working in the area of rural...
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...ISLAMIC BANKING INDUSTRY Course Title Instructor Institution City and State Date Abstract Islamic banking is on a steep rise in western countries. The increase is due to the management and the demand of Islamic financial products from both the Muslim and the non-Muslim residents in the United Kingdom. Another contributor to the increase in Islamic financing is the fact that the opponents are slowly joining and investing in the Islamic financial products due to their high demand. The United Kingdom has emerged to be the core of Islamic banking for over thirty years now. The reason behind the tremendous performance in the Islamic banking industry is the fact the Islamic population is greatly increasing offering ready market for the financial products. The purpose of this paper is to examine in details the major contributors to the expanding Islamic banking industry as well as the major setbacks that face the Islamic banking industry mostly in the United Kingdom. The findings were collected from random questionnaires given and also interview conducted on four major groups which are; Islamic banking staff, the Islamic banking competitors, the clients and also the non-clients. Background The paper presents the general background of the Islamic banking industry in the United Kingdom as well as the challenges. The Islamic banking started as a result of the Egyptians’ Mit Shamir, who opted to share profits and losses back in the year 1963. After three years of operation...
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...CHAPTER 3: BRIEF PROFILE OF POLAND Poland officially the Republic of Poland is a country in Central Europe, bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus to the east; and the Baltic Sea and Kaliningrad Oblast (a Russian exclave) and Lithuania to the north. The total area of Poland is 312,679 square kilometer’s (120,726 sq. mi) making it the 69th largest country in the world and the 9th largest in Europe. With a population of over 38.5 million people, Poland is the 34th most populous country in the world, the sixth most populous member of the European Union, and the most populous post-communist member of the European Union. Poland is a unitary state divided into 16 administrative subdivisions. POLITICS * Poland is a democracy, with a president as a head of state, whose current constitution dates from 1997. Poland is one of the most stable and peaceful countries peaceful countries. The government structure centers on the Council of Ministers, led by a prime minister. * The Constitution of Poland is the supreme law in contemporary Poland, and the Polish legal system is based on the principle of civil rights, governed by the code of Civil Law. * Historically, the most famous Polish legal act is the Constitution of 3 May 1791. Historian Norman Davies describes it as the first of its kind in Europe. Foreign relations * In recent years, Poland has extended its responsibilities and position in European and international...
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...Central and Eastern European countries like Poland and Romania are strong spots on the global outsourcing map Globalization & Integration Group Project Table of Contents Abstract 3 Introduction 3 Poland 4 Significant savings costs 5 Ability and quality of resources 5 Low risk location 5 Culture Similarity 6 Investment Climate 6 article 7 Romania 8 Government support and business environment 9 Quality of the language and educational skills 9 Low labor costs 10 Culture 10 Intellectual property security and privacy 10 article 11 Comparison 12 Cost competiveness 12 Resources and skills 13 Economic competitiveness 13 Regulation 13 Corruption perception 14 Legal protection 14 Conclusion 14 References 14 Abstract In this paper, we discuss why are the Eastern European countries like Romania and Poland potential destination for outsourcing. Given an economic condition, Geographical advantage, business environment and quality issue explanation of each country. Both countries are economically competitive in outsourcing market in Eastern Europe, promptly emerging as a favorite destination. Introduction Outsourcing is a practice used externally...
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...abandoned its efforts to maintain a fixed- exchange rate – the Baht had been pegged to a basket of currencies dominated by the U.S. dollar – and allowed the Baht to float. This Baht quickly depreciated, falling 18% on the first day alone. The collapse of the Thai Baht was followed by speculative attacks on other countries’ currencies (including the Indonesian Rupiah, the Malaysia Ringitt, the Philippine Peso, and the Korean Won) and to a further round of forced devaluations. The collapse of fixed exchange rates was accompanied by a series of more general financial sector crises in several of these countries. Although the precise details vary, the immediate cause appears to be a mismatch between assets and liabilities in the corporate and banking sectors (in both currency and term length) and a sharp decline in asset values. These immediate problems were exacerbated by general financial sector weakness due to inadequate supervision and rampant insider lending. In many ways the crises in Asia were somewhat different than previously observed exchange rate crises. Corsetti, Pesenti and Roubini (1998) note that several of the usual indicators of a pending financial crisis – slow growth, large fiscal deficits, high rates of inflation and low savings and investment rates – were not observed in these countries prior to the crises. This led several observers to suggest that the crises were the result of self-fulfilling prophecies (i.e., the belief that the currency might be devalued...
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