NEWSBRIEFS (07/26/98)

NEWSBRIEFS

Kuchma upbeat on receiving IMF loan

KYIV - President Leonid Kuchma has said he is hopeful that an International Monetary Fund mission expected in Ukraine on July 23 will recommend the release of a $2.5 billion loan to Kyiv, Ukrainian Television reported on July 19. He said the IMF mission "is coming with the wish to make a final review of the [loan] program and approve it." Mr. Kuchma added that the World Bank, which, like the IMF, suspended cooperation with Ukraine, has promised him it will release more than $1 billion in credits following "the very first telephone call from the IMF." In related news, the president has once again appealed to the Verkhovna Rada to approve an amended 1998 budget with a reduced deficit equal to 2.3 percent of the GDP. "The refusal to make a decision on this issue will threaten Ukraine's national interests," Ukrainian Television quoted the president as saying. (RFE/RL Newsline)

Ministers discuss border issues

CHISINAU - Moldovan Foreign Affairs Minister Nicolae Tabacaru met with his Ukrainian counterpart, Borys Tarasyuk, in Chisinau on July 17 to discuss disputed border issues, BASA-press reported. Mr. Tabacaru said the talks were constructive and that the three separate disputes over their common border would be resolved simultaneously rather than separately. Mr. Tabacaru said Ukraine's proposals are being studied, but he gave no details about them. Mr. Tarasyuk also met with Moldovan President Petru Lucinschi, who said Chisinau will work to "consolidate its traditional relationships with Ukraine." (RFE/RL Newsline)

Yeltsin aide comments on summit

WASHINGTON - The press secretary to Russian President Boris Yeltsin has commented on the Ukrainian-Russian summit that has been scheduled for September 18-19 in Kharkiv. Sergei Yastrzembsky said in Moscow that the meeting of the two leaders "will be interesting," as the topics to be discussed include a bilateral economic cooperation program. He added that Russia is concerned about the drop in its trade with Ukraine. He said the northeastern Ukrainian city of Kharkiv was selected to host the summit because of its "economic, spiritual and humanitarian proximity to Russian border regions and because these relations determine the rhythm and content of economic relations between the two countries." (Embassy of Ukraine)

National bank devalues hryvnia

KYIV - National Bank of Ukraine Chairman Viktor Yuschenko has said the bank is slowly lowering the value of the hryvnia to stop the drain of its foreign currency reserves, Ukrainian News reported on July 14. The exchange rate slipped from 2.06 hrv to 2.11 hrv per U.S. dollar at the beginning of July when foreign investors repatriated some $130 million in government bonds. The National Bank reserves have decreased from $2.5 billion to $1.76 billion in the first half of this year. Mr. Yuschenko said Ukraine's financial situation remains under control and that successful negotiations with the International Monetary Fund in Washington last week on a new $2.5 billion loan to Ukraine provide hope for a rapid stabilization. (RFE/RL Newsline)

Rada approves procurator general

KYIV - The Verkhovna Rada on July 16 approved the appointment of Mykhailo Potrebenko as procurator general by a vote of 266 to 34. Mr. Potrebenko, who has been Kyiv's procurator since 1997, argued that the procurator's office should be given the power to initiate legislation. He remarked that, even though the procurator's staff has more than doubled in size over the last several years, it has not been carrying out its duties. He also said "it is too early to raise the issue of abolishing the death penalty," adding that, while he respects the opinion of the international community on this issue, "we must consider Ukraine's unique situation." (Eastern Economist)

Another IL-76 cargo plane crashes

ASMARA, Eritrea - A Ukrainian IL-76 cargo plane flying from Burgas, Bulgaria, crashed during landing in Asmara, the capital of Eritrea, on July 17. The Iliushin-76 was leased by the Ukrainian Aviation Company. Its crew included nine servicemen and one civilian who was escorting the plane's cargo. The cause of the crash and the number of casualties is not yet known. This is the second air crash in a week involving a Ukrainian military cargo plane. A plane chartered by the Ukrainian ATI Airline exploded in mid-air and fell into the Persian Gulf off the United Arab Emirates coast on July 13, killing all seven persons on board. As a result of the two crashes, the Emergencies Ministry said on July 20 that Ukraine has grounded all its IL-76 and IL-78 cargo planes pending investigations of the crashes. On the same day the Bulgarian newspaper 24 Hours reported that the Ukrainian aircraft that crashed in Eritrea may have been carrying weapons. It also said the plane may have been shot down. The Ukrainian government delegation arriving in Eritrea neither confirmed nor denied this report. (Eastern Economist)

Kharkiv under-11 team excels in U.S.

BLAINE, Minn. - Druzhba '78, an under-11 soccer team from Kharkiv that is touring the United States, participated in the July 12-17 U.S.A. Cup international soccer tournament in suburban Minneapolis. The Ukrainian team reached the quarterfinals before losing to a team from Tulsa, Okla. Before this loss, the squad had won five straight matches without giving up a goal. The tournament included over 800 teams from around the world. The Kharkiv team was the only Eastern European team entered in the tournament. (Eastern Economist)

Japanese agency lowers Ukraine's rating

KYIV - The Japanese rating agency R&I has lowered Ukraine's credit rating from BB+ to BB-, Ukrainian News reported on July 20. The agency said the change is due to the prolonged suspension of International Monetary Fund loans to Ukraine and increased political risk within the country following the election of a leftist Verkhovna Rada. Ukraine's Finance Minister Ihor Mitiukov commented that the Japanese agency will raise Ukraine's rating once the country receives another loan from the IMF. (RFE/RL Newsline)