OREANDA-NEWS. October 21, 2009. On 20 October, the Verkhovna Rada decision to raise the minimum subsistence level by 11% to UAH 701 in November-December 2009, while the minimum wage is to rise by 14% to UAH 744 over the same period.  In 2010, both the minimum subsistence and the minimum wage levels are to be raised by 25% and 24%, respectively. According to the Government of Ukraine's estimates, this will require additional funding of around UAH 8bn in 2009 and UAH 71bn in 2010.

Millennium Capital regards the news as negative, since this increase in social standards will increase Budget Expenditures. This may cause the expected Budget Deficit to exceed UAH 60bn, which runs counter to the IMF ceiling requirement (UAH 58bn in 2009) and may minimize the probability of its fourth tranche provision. Overall, the decision seems to be overly political, since it is aimed at gaining people’s favor on the eve of the Presidential race.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of tickets selling for its flights due to high arrearage to the creditors of the company.