Tuesday, February 16, 2010

Advice to the New President

Many are now offering advice to the new president

Like the Independent International Expert Commission

or Akhmetov's Foundation for Effective Governance


So there's no shortage of advice - now only hope somebody actually takes the advice into account...

Monday, February 15, 2010

Some Links

For some advice on how to improve trust in banks, go to


For a short article on prizes and awards, go to


And if you still have some new year's resolutions left, check

Saturday, February 13, 2010

Economics and Winter Olympics

given the start of the winter Olympics, some work on the relation between sports and economics seems appropriate.

According to this study, the climate is a more important determinant of success at the Winter Olympics than at the Summer Olympics.


And according to this study, success in sports competitions (like medals in the Olympics) does not increase happiness in a country.

Friday, February 12, 2010

Political Business Cycle in Employment

Elections as a stimulus to the economy

"According to Director of the Sociological Service of the Razumkov Center for Economic and Political Studies Andriy Bychenko, this January the unemployment rate temporary became lower thanks to the election.

"Many enterprises get additional orders and the people - temporary work," Bychenko has said.

However, he believes that after the new President swears an oath there will be more jobless persons since the state of the economy has not fundamentally changed.

"According to our data, today there are 12.5% of the unemployed in the country. There are many persons among them who are not registered at employment centers," Bychenko said.

According to him, the future election to local councils can improve the situation temporary"."


Thursday, February 11, 2010

The Winner of the Elections: the Ad Agencies


"During the presidential election campaign in Ukraine, candidates for the presidential post spent on advertising and PR services from USD 2 billion to USD 3 billion (1 USD - 8.009 UAH), representatives of the advertising and PR market told a press conference today."


I wrote a column on this in July 2009 which you can find here

Tuesday, February 9, 2010

Impaired Loans in Ukraine - The Case of Swedbank

Swedbank's latest report gives some interesting stats on its Ukrainian branch (see p37)


The number of employees has been decreased from 3870 to 2880, that's (about) minus 1000.

Share of impaired loans (gross), defined as

"Loans where payments are unlikely to be made in accordance with contract terms. Such loans are not considered impaired if there is collateral that covers principal, interest and any late fees by a safe margin. Impaired loans, gross, less specific provisions for loans assessed individually and provisions for homogenous loans assessed collectively constitute impaired loans, net.http://www.swedbank.se/arsredovisningar/2007/en/adrregdef/definitioner.html

reach 54% in 2009 vs 4% in 2008.

For the Russian branch this share is at 18%, for Sweden less than 0.5%.

As far as I can judge, the transparency of this Swedbank report is impressive.

Monday, February 8, 2010

Price Control

From the Law Firm ANK newsletter

"
We would like to inform you that on January 20, 2010 the list of the objects of the state price control had
been approved by the Decree №40 of the Cabinet of the Ministers of Ukraine. The period of the state price
control is determined as 2010-2011.
The list had been supplemented with new objects – dry milk and butter, which are not included to the list on
the present marketing year, and are subjects to the regulation from April 1, 2010 till December 31, 2010.
Yuriy Melnyk - Minister of Agricultural Policy of Ukraine had noticed that introduction of the state price
control under the milk products is connected, in particular, with necessity of prevention of summer price
collapse related to purchase of these products for state intervention fund.
Besides that to the list for 2010-2011are included: soft and hard wheat, grain mix of wheat and rye, winter
rye and spring wheat, barley, wheat flour and rye. State price control under the following goods is supposed
to be implemented from July 1, 2010 to June 30, 2011.
Granulated sugar (beet bin) and corn are also included into the list from September 1, 2010 to August 31,
2011 and October 1, 2010 to July 30, 2011
The Cabinet of the Ministers annually determines the list of the objects of the state price control, on which
minimal and maximal intervention prices are settled. In this case depending on the situation through the
Agrarian Fund is carried out purchase or sale of these objects.
Thus, in 2009-2010 marketing year objects of the state price control is soft and hard wheat, winter and
spring rye, barley, wheat flour and rye flour, granulated sugar (beet bin) and corn.


Full list of the objects of the state price control
In accordance with the Law of Ukraine on Agriculture State Support objects of the state price control are
such kinds of agricultural products (goods) as:
- Wheat firm;
- Soft wheat;
- Grain mix of wheat and rye (meslin);
- Corn;
- Barley;
- Winter rye;
- Rye spring;
- Peas, buckwheat;
- Millet
- Oats;
- Soya;
- Sunflower seeds;
- Rapeseed;
- Flax seeds;
- Hop cones;
- Sugar (beet bin);
- Wheat flour;
- Rye flour;
- Meat and offal of slaughtered animals and poultry;
- Milk powder;
- Butter;
- sunflower oil.

"