OREANDA-NEWS. February 24, 2010. The Cabinet of Minister decided to increase the financing of the military-industrial complex of the country. To this end, the Government will raise the statutory capital of Ukreximbank by UAH 4.6bn to UAH 16.4bn. The financing will be provided in the form of loans guaranteed by the government.

Millennium Capital sees the news to be rather positive, since the military-industrial complex of Ukraine is quite profitable (sales increased by 40%, y/y in 2009), so it is perfectly capable of repaying the loans provided by the government. At the same time, Millennium Capital does not expect a significant inflationary pressure as a result of this significant disbursement of State budget funds, since the monetary base (UAH 189bn in January 2010) still satisfies the IMF requirements set forth for 2009 (in the amount not exceeding UAH 201bn).