[WORLD FINANCE REVIEW - DECEMBER 2011] - Download PDF

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Editorial Features

UKRAINE

» Predicting Global Economic Crises: New Scientifi c Approach
Dr. Sergey Chernyshov, President of Ukraine-based Insurance Company Lemma, talks about one of his papers, which offers a new look on the reasons of occurrence of crises in the global economy.

» Ukraine’s Regional Integration: Reasonable Diversification
Does Ukraine have to choose between the European Union and the CIS?

» Ukrainian Banks: Answering Two Key Questions
For Ukrainian banks the two key questions are always “Where to get financing?” and “Where to invest?”

» Investment in Ukraine’s Healthcare
In Eastern Europe, healthcare services sector is popular for investment. Ukraine, however, still
has unoccupied niches, and there are a number of reasons for this.

» Ukrainian Stock Market: Performance in 2011 and Outlook for 2012
The Ukrainian stock market has long been known for its roller-coaster moves. Steep swings in the value of Ukrainian equities are driven primarily by the market’s poor liquidity, which, however, is likely to improve along with still ailing corporate and public governance.

» Surprising Appetite for Deals Despite Market Turbulence
Despite economic turbulence and market turmoil, 41% of leading international companies expect to make an acquisition in the next 12 months, according to Ernst & Young’s latest Capital confi dence barometer.

» Ukrainian M&A Market: Legal Viewpoint
Comments of legal professionals on some aspects of M&A in Ukraine

RUSSIA

» Russian Economy: Main Trends of 2011 and Outlook for 2012-2014
In 2011 the Russian economy in general followed a recovery trend with household consumption being the main growth driver for economic growth.During 2012-2014 slower growth is expected at a rate of two times lower the precrisis level.

» Growing Risks: Russian Economic Report
A report by the World Bank examining the risks to Russia's economic growth.

» "Give Me Chastity ... But Not Yet" - Russia’s Great Macroeconomic Transition
Russia is facing a dramatic change in its economic paradigm over the next couple of years. The inevitable transition from twin (fiscal and current account) surpluses to twin deficits that will be completed by 2014 will be the most important thing to watch. Will Russia continue to dither in addressing the imminent twin deficits? Or will it, in recognising their far-reaching macroeconomic implications, strive to improve its investment climate in order to finance these deficits?

» New Wave of Crisis: A Chance for Russia?
For emerging markets, and Russia in particular, a debt crisis in developed countries may offer an opportunity.

» Eurozone Crisis and Its Impact on Russian Banks
The European sovereign debt crisis recently had the most adverse effect on the balances of European banks.Up to a certain moment, Russian banks only to insignificant extent felt the problems of their European colleagues, which was mainly expressed by less opportunities to attract funding from foreign banks.

» Russian Banking Post-Crisis: Similar but Different
The Russian banking system has seen some recovery this year.Although indicators look modest, as they are far below the pre-crisis level, we strongly believe that the Russian monetary authorities should avoid achieving the pre-crisis growth rates. In fact, even this year’s moderate growth holds in itself a danger of structural disproportions.

» Russian Banking Sector: Trends and Risks in 2011
In 2011, the growth rates of the main quantitative indicators of Russian banking sector followed positive trends. This positive dynamics, however, does not mean that the recessionary processes have been overcome. The banking system is still burdened with overdue and toxic assets, making it potentially vulnerable to a potential capital deficit and liquidity squeeze.

» S&P: Banking Industry Risks of Russia, Kazakhstan, Ukraine Reviewed
On November 9, 2011, Standard & Poor’s Ratings Services revised its Banking Industry Country Risk Assessment (BICRA) on Russia, Kazakhstan and Ukraine.

» Banking in Russia: Adjusting to Post-Crisis World
Since 2008, there are increasing worldwide concerns about the future of banking and its ability to survive in new post-crisis economic conditions. There are numerous fundamental researches and forecasts of post-crisis performance of the banking sector; and experts from the CIS do not stand aside these debates. This brief article presents the current landscape of Russia’s banking sector and highlights post-crisis strategies and initiatives of its key players.

» The Challenge of Changing Risk Regulation in Russian Banks: How they can minimise compliance cost, derive strategic value, and build strategic advantage

» Enhancing Opportunities: 2011 Russia Attractiveness Survey
Summarised results of the survey conducted by Ernst&Young .

» Putin-Medvedev Shuffle Redux: Stability Is Not Stagnation

» Russian Stocks Attractive amid Growing Global Uncertainty

» X International Investment Forum “Sochi 2011” : Results
On September 15-18, 2011, X International Investment Forum Sochi 2011 took place in Sochi,
the capital of Krasnodar Region.

» Putting the "R" back in "BRICs"
Numerous commentators and professional prognosticators have questioned Russia’s position as one of the world’s leading emerging economies by suggesting the letter “R” be removed from the phrase “BRICs”. Michael J. O’Flynn, Managing Directorat UFG Asset Management, argues that Russia most certainly deserves to be regarded as one of the elite EM nations, in part due to shared characteristics with its BRIC peers, and in part due to its uniqueness.

» Looking Beyond Uncertainty
In this article WFR present the opinions of some of Russia’s leading experts about today’s global environment, where the world economy is heading to, and what the winning strategy is for Russia to escape the next global turmoil.

KAZAKHSTAN

» Tenge: Exchange Rate Stable, Interest Rates Volatile
Since sharp devaluation of Tenge in 2009, the terms of trade in Kazakhstan have largely recovered, yet Tenge failed to appreciate. This article examines the factors that, in the opinion of the author, will drive the value of Tenge and shape the policy response to external shocks in the months to come.

» Investment Friendly Kazakhstan
The country is in top three most attractive investment destinations in the CIS.

» Kazakh Stock Market: Boom or Doom?
Despite more than 10 years of history, Kazakhstan’s stock market remains in early stages of development.Since its emergence, the market has experienced good growth, but the choice of financial instruments available remains limited and not sufficient to meet the growing market needs.

» Kazakhstan Stock Exchange: Better Years Ahead
Interview with Kadyrzhan Damitov, President of JSC Kazakhstan Stock Exchange (KASE)

» Experience is the Best Teacher
Kazakhstan Deposit Insurance Fund recently conducted a comparative research analysis on the deposit insurance systems of the CIS countries, which revealed several important and interesting trends.

» Privatisation of ‘Holy Cows’ to Start in 2012
Kazakhstan is planning to initiate a wide-scale privatisation programme (People’s IPO) from 2012 - 2015, which will include IPOs of shares in the country’s most attractive national companies and monopolies in the infrastructure and energy sectors.

» Kazakh Banks: This Time is Different
During the 2008-2009 crisis, Kazakh banks were the centre of attention, but have since fallen off almost everyone’s radar. The fundamentals look much better to us today than three years ago, yet valuations and bond yields would imply that we are heading for another disaster.

» Basel II and Basel III: Prospects for Implementation of New Standards in Kazakhstan

» Challenges and Opportunities for Islamic Finance in Kazakhstan
In 2009 the Republic of Kazakhstan became the fi rst country in the Commonwealth of Independent States to introduce fundamental legislative amendments for purposes of Islamic finance.