Ukraine: metallurgists the worst borrowers
Metal industry is the worst borrower for banks: past-due debts on loans reach 39.5%, with foreign currency loans amounting to 91.6%.
Metal industry is the worst borrower for banks: past-due debts on loans reach 39.5%, with foreign currency loans amounting to 91.6%.
“In my opinion, the Ministry of infrastructure announced railroad transportation tariffs rise will not greatly affect mining companies”, said the Ukrpromvneshexpertisa analyst Dmitry Zheltyakov.
The future of the steel construction depends on the state policy in attracting investments and on the Ukrainian metal construction sales on new markets.
In January Ukraine produced 1920 thousand tons of pig iron, 1938 thousand tons of steel and 1689 thousand tons of rolled metal, up by 112% and 103% and down by 98% YoY respectively.
Ukraine is on the brink of all the metal companies halt, after that currency revenues will fall, while unemployment will increase. This is stated in the letter to Prime Minister Arseny Yatsenyuk, signed by directors of the 12 major metal and mining companies.
In 2015 Ukrainian metal makers increased their losses by 31.6% YoY, or by 7.5 billion UAH, to 31.2 billion UAH.
The mining-metallurgical complex, even despite the crisis, is one of the key engines of Ukrainian economy with 15 billion UAH of taxes and around 1 million employees.
Ukraine’s metal industry is among priorities for the authorities, but as for now it’s ineffective and not completely competitive.