OREANDA-NEWS. March 24, 2010. Dragon Capital, Ukraine's leading investment bank, on March 18-19 held its 6th Annual Investor Conference, a premier forum to discuss Ukraine’s macroeconomic and political outlook following the presidential elections and formation of the new government.

Deputy Prime Minister Sergey Tigipko opened the conference with keynote speech “Reform Agenda of the New Government” that discussed economic challenges Ukraine is facing following its protracted political turmoil and economic crisis. “The new government has two major programs on its agenda, for the short-term and long-term perspective. Drafting a realistic budget, improving the investment climate and stabilizing the banking sector are among our key priorities”, Tigipko said.

Answering questions from foreign investors regarding re-establishment of cooperation with the IMF, Tigipko pointed out: “I perfectly understand the IMF’s logic. I believe it is fair enough. The requirements set by the IMF are pragmatic, and it is not only the Fund that needs them as a creditor, but first and foremost, we need them.” The Deputy Prime Minister discussed plans to privatize three banks bailed out by the previous government and jumpstart privatization of other state-owned assets including Ukrtelecom and thermal power generating companies (GenCos). Ukrtelecom shares rallied by 15% and GenCos added 5% on the news.

Andrii Goncharuk, Deputy Chief of Staff in the Administration of the President of Ukraine, delivered a speech on Ukraine’s economic policy priorities, citing renewal of cooperation with the IMF and the international investment community as one of the country’s key objectives. In the panel discussion that followed, senior representatives of the IMF, the EBRD, the National Bank of Ukraine and Parliamentary Committee on Foreign Affairs discussed Ukraine’s investment climate and prospects for economic recovery and political stabilization.

Tomas Fiala, Managing Director of Dragon Capital, commented on the results of the conference: “We are glad to see the revival of foreign investors’ interest towards Ukrainian capital markets. This year our annual conference has gathered not only our long-term clients but also a considerable number of new foreign and domestic investors. The improving perception of Ukraine’s prospects fueled by the positive outcome of the presidential elections and anticipation of economic reforms has quickly made its way into the equity and bond markets. We are positive about the market’s prospects and believe our optimism is well-grounded.”

The conference audience consisted of more than 100 senior representatives of Western funds active in Ukraine’s capital markets, including Goldman Sachs, FIM, Danske Capital, CIM, East Capital. Conference participants collectively manage hundreds of billions of dollars and have historically accounted for a major share of turnover in Ukrainian stocks and bonds. 

Foreign investors participating in the conference held one-on-one meetings with over 30 leading listed corporates and bond issuers, including MHP, Kernel, Astarta, Alfa Bank Ukraine, Bank Forum, Motor Sich, Metinvest group listed subsidiaries and other companies representing strategic sectors of Ukraine’s economy such as agriculture, oil & gas, banking & insurance, engineering, energy and real estate.