News Parkiet

The economy

Economy ministry considers wage costs

reduction

Economy Ministry may propose to lower wage costs paid by employers, including obligatory payments to Labor Fund and pension system, as early as next year, learned PARKIET. At the same time the ministry would propose to increase the net minimum wage. The ministry advisors say this move would result in higher employment as the difference between unemployment benefit and minimum wage would increase, making more unemployed to hunt for a job. The ministry has drafted three versions of wage costs cut scheme, each resulting in a different budgetary burden. The ministry expects the most expensive scheme may draw additional 920 thousand employees to labor market.

Equity markets

Ukraine stock trading halted for second day

Share trading on Ukraine's main stock exchange in Kiev was halted for a second day as protests continued in the capital city following Sunday's presidential elections. "Price stability worsened" causing trading to be suspended at noon, said Anna Pogodina, the bourse's spokeswoman. The exchange halted trading on Monday at 3 p.m. Bids for Ukrtelecom, the nation's biggest phone company, fell 50 percent yesterday and Kryvorizhstal, Ukraine's largest steelmaker, dropped 85 percent. The bourse's main index of 10 stocks hasn't recorded changes this week because of the lack of trades.

Banking

Citibank sells Bank Handlowy exchangeable bonds

Citigroup's Citibank NA raised 436.5 million dollars by selling bonds exchangeable for shares of Bank Handlowy, its Polish unit. The bonds, which will mature in three years, will be exchangeable into a 14.3 percent stake in Polish bank. Citibank, which now owns 89.3 percent of Warsaw-based Bank Handlowy, has to cut its stake to meet regulatory requirements. The firm has to cut its stake this year to 75 percent, the biggest shareholding foreign investors are allowed to have in Polish companies.