Christos Savvides, Member of the Board of Directors of the EOS Group with responsibility for Eastern Europe, explains: “Of all credits in the Ukraine with a total of some 24 billion US Dollar almost 30 percent were rated as defaulting in 2010.” The reason: Individuals who took out loans in foreign currencies, primarily dollars, were hit hard by the devaluation of the Ukrainian Hryvnia. The currency was devalued by over 50 per cent. Therefore, the repayment of foreign currency valued loans became more strenuous – the lower or non-repayment of loans affecting many banks.

[sc name="goget" misc1="Эволюция, так сказать" misc2="Итальянцы слишком плотно засели в офисах. В этих же офисах они мало работают. А ведь индустрия Италии постоянно сокращается. И если раньше итальянцы, к примеру, делали неплохую бытовую технику. Сейчас - только высшую линию и профессиональное прачечное оборудование. Но этого явно недостаточно, для того, чтобы поддерживать рост ВВП, и как следствие - высокие жизненые стандарты. Приходится перекрывать дыры в бюджете за счет заимствований..."]

“International companies want a partner who, like EOS, ensures service quality while preserving the company’s image and customer satisfaction”, Mr Savvides adds. EOS focuses on the banks’ and on their customers’ needs in order to find acceptable financial solutions for both sides. “We look forward to serving both local and international clients in Ukraine.”

The Ukrainian EOS company will be headed by Aleksey Teslenko. He has been working in the financial sector for the past twelve years, for five years in top management positions. Before he started his job at EOS he was Managing Director for one of the Ukrainian market leaders for outsourced collection and call-centre services.

He says:

“We profit from the good connections to and the know how of the EOS Group companies in our neighboring countries. Our clients will benefit from the long term-experience and financial background of EOS.”

The EOS Group

The EOS Group, an Otto Group subsidiary, is a leading international provider of tailor-made services covering the entire life cycle of a customer relationship – from customer acquisition to electronic payment processing, debt collection and purchase of receivables portfolios. The core business is receivables management. EOS is committed to high standards of debt collection to protect creditors and consumers. With over 5000 employees, EOS serves its 20,000 customers in more than 20 countries worldwide through over 40 subsidiaries.

It is reported that representatives of Apollo Management have met with two potential partners – the CEO of Mosaic Media Group (Allen Shapiro) and former CEO of CKX.

EDIFEE is a development venture providing financing and funds to projects In eastern European countries. The fund represents several European banks, international funds and private investors, which created a collaboration under one special financial vehicle facility and support, by funding up to 100% financing and grants for unique projects which are in national interest of each country the fund is operating in. The financing will be provided under favorable conditions for investment opportunities in the country.

“The fund will be giving prioritizing for infrastructure and environmental projects in Ukraine. ” stated the memorandum for investors.

The leading factor in receiving the support from EDIFEE is the need of each project or company to manage projects which are economically viable and feasible for implementation, and are in the country’s national interest for obtaining better quality of life for the population. Another goal is the implementation of advanced technologies and equipment while creating more working opportunities for the population
According to this factors, the fund has announced earlier this week it will support ECOVERDE® projects in Republic of Moldova and intend also to support the ECOVERDE® projects in Ukraine as well
ECOVERDE project is a unique environmental program which implemented a waste management solution through private entities, for each city as an autonomous unit. The project was found highly eligible according to the guide lines of the EDIFEE board of investors.

The fund already approved 28 million euro investment in ECOVERDE® locations within the Republic of Moldova for this year only, and will allocate higher funding for ECOVERDE® projects in Ukraine due to the market size.
The fund is currently open to new projects and initiative on the Ukrainian market and recently launched an information site which specify the financing eligibility: www.edifee.com

On the other hand, despite assuasive statements by high-ranking officials and a number of positive reports, the U.S. economy is still on the edge of a repeated recession, which is another reason for evasion from risky assets. In fact, despite the favorable NFP report last Friday, the prospects of labor market recovery are equally vague. According to a Manpower research, the U.S. workforce won’t be sought after in the fourth quarter, as opposed to a great request for employees in China, India, Brazil and Taiwan. The ensuing U.S. unemployment rate may go up to 10% once again. All said, today’s Beige Book report is unlikely to reverse the trend in the market. Rather, it will either confirm, or refute investors’ outlook with regards to the condition of the U.S. economy. In case of unfavorable news, the U.S. dollar may gain value against the background of risk evasion. EUR. Now the pan-European currency goes on falling amid fears that sovereign debt risks may wreck European banking system, leading to negative impact on economic recovery in the Eurozone. No wonder, such bad news led to the expansion of spreads, while rumors grew in the market that the ECB had intervened Tuesday morning in the bond market to support sovereign debts of the PIIGS (Portugal, Italy, Ireland, Greece and Spain) member states.

Unfavorable data on German factory orders placed an additional strain on the Euro rate. Decrease in their figures, another indicator of slowing recovery in the EU, is reflecting falling demand in the Eurozone. Even the statement by the ECB chairman E.Novotny, in which he stressed that the EU isn’t under the threat of deflation, and that its member states facing debt crisis made good progress in overcoming threats they had faced, couldn’t stop the Euro downfall. According to data on Germany’s trade balance published today, the seasonal surplus showed slight growth by 12.7 bln. euros, comparing to 12.4 bln. euros in June., falling short of backing up the pan-European currency rate. If data on industrial production equally fall short of forecasts, the Euro will face pressure bridging the backing of 1.2670. What is more, its fluctuation can bу stimulated by an abatement in EUR|GBP cross rate). GBP. Now yesterday the British Pound couldn’t bridge the backing of 1.53 rate and started retreating, equally owing to the dynamics of GBP|EUR cross rate, against the background of a lack of reports. Today the Pound showed considerable growth, the reason being Halifax data on house prices that surpassed forecasts.

Australia’s S&P/ASX 200 got fatter by 0.76%, while New Zealand’s NZX50 closed with 1.15% growth, despite a 7 magnitude earthquake in Cristchurch, country’s second largest city. Favorable U.S. statistics also provided for growth of a number of Asian exporters. Thus, Japan’s camera producer Canon seeing 28% of its profit in the U.S. market increased by 1.6%. The shares of Esprit Holdings outfit retailer grew by 1.9%, while those of James Hardie Industries dealing with facing materials got fatter by 3.2% in Sydney trading. South Corea’s Samsung Electronics with one-fifth of its profit in the U.S. market strengthened its positions by 2.5%. It’s worth noting that the company reported plans to invest $ 25 bln. into business expansion.

The stocks of BHP Billiton, world’s leading ore mining company, grew by 1.9%, against the background of growing demand for metals as a result of expected global economy growth. The shares of Elpida Memory, Japan’s largest memory chip maker, grew fatter by 1.9%, after Morgan Stanley Securities raised its rating to “overweight”, while those of Wintek, producer of DLP chips for Apple’s iPhones, jumped by 7% after Credit Suisse Group analysts lifted ratable value of its stocks from NT$35 to NT$52. The papers of Nanya Technology, Taiwan’s second largest DLP chips maker, added 6.8% after the company had reported 44% growth in August sales. The market value of Chinese insurers increased after country’s government had granted them permission to invest into private investment companies and into real estate. For example, China Life Insurance shares grew by 1.3$, while those of China Pacific Insurance went up by 3%.

In this regard, the recent report by the FED chairman Bernanke in which he noted that “the economic conditions are preconditioning revitalization of economic growth in 2011” sounds reasonably optimistic. It is natural that Bernanke’s report raised a surge of demand for high-yield assets leading to a fall in value of the U.S. dollar (although at first it led to market’s rocking back and forth). However, the report on activity in the U.S. service sector turned to be a bit disappointing. The sector growth is experiencing a maximum slowdown for the last 7 months. The ISM index for the sector making up nearly 90% of the national economy went down from 54.3 points in July to 51.5 points. One should view it as a signal to slowing recovery in the second-half year. At the same time, if the Congress takes a series of stimulating measures, such as tax cuts and extension of tax credits, a revival of activity will surely follow.

Now this week isn’t likely to present us with reports of interest from the U.S. The Labor Day celebrated today, September 6, will cause low liquidity. Later in the week one should pay attention to the Beige Book review and to trade balance data report. Yet, most likely none of these will spark a burst of activity. Rather, these two events will allow estimate the current state of things in the market.

Taking into account data distortion due to part-time employees, we are going to concentrate on private sector employment. So far, all figures are pointing to positive news, although we are still lacking data on the service sector (i.e. the most foolproof index), which are to be published after the pay-roll record data. The customer confidence has increased, along with the growing number of workplaces in the manufacturing industry and fewer dismissals. The market is expecting 42 thousand new jobs in the private sector. In case of a higher figure, it may back up the U.S. dollar, in the view of a delayed quantitative easing by the FED. We are also looking forward to the publishing of a report on business activity in the service sector. Although we use this index mostly for employment rate forecasts, it is worthwhile bringing into view the overall condition of the public sector making up a considerable part of the U.S. economy.

The sales in the period under consideration fell to $ 1.52 bln., with an average forecast of $ 1.59 bln. The company secured growth of earnings due to the lowering of productions costs and higher sales of beverages under brand V8. At the same time, soup sales in this period decreased by 5% in the U.S. market. US publisher, developer, and distributor of entertainment software Take-Two has published data on profits in the third quarter and an exceeded profit forecast.

By the end of trading, Japan’s Nikkei22 index went up by 1.52%, China’s CSI 300 – by 1.3%, while Australia’s S&P/ASX 200 – by 0.82%. Philippines’ PSEi finished trading with the record 2.04% growth. The regional MSCI Asia Pacific index, in its turn, stiffened by 1% to a two-week record of 119.26 points. Vietnam’s market didn’t open because of a national holiday. Once again, favorable U.S. statistics provides for growth of shares of companies making most of their profits in the U.S. market. Thus, Sony shares grew by 2.2%, while James Hardie Industries, the largest facing materials supplier in the U.S. market, gained 0.6% in the Sydney trading. At the same time, the shares of Billabong International, Australia’s leading surf clothing producer, grew by 2.2%. Today’s trading was favorable for Japanese exporters, against a background of yen’s weakening. Therefore, Honda Motor and Nissan Motor shares went up by 1.9% and 3% respectively. Finally, Ping An Insurance, China’s second-largest insurer, gained 2.7% after its board of directors had voiced an intention to pay yuan 29.1 billion ($ 4.3 billion) for 22.4% of Shenzhen Development Bank shares. Owing to this deal, the Chinese insurer is going to secure the control stock with 52.39% of shares. After the announcement, Shenzhen Development Bank’s shares grew by 3.9%.