OREANDA-NEWS. On 13 August 2009 was announced, that National Bank of Ukraine First Deputy Chairman Anatoliy Shapovalov said that the NBU's board approved of plans to increase the monetary base 6% in 2009, Interfax reported yesterday. Even though the government's loan agreement with the International Monetary Fund theoretically allows for the NBU to expand the monetary base by a much wider margin, Shapovalov said that the NBU will instead pursue a tougher policy.

Concorde Capital: We think that this move is aimed at curbing growth in the hryvnya supply to prevent UAH depreciation in autumn. Given that the IMF demands more flexibility in hryvnya exchange rate, the central bank has to apply to other instruments than direct intervention on the currency market in order to curb hryvnya depreciation.

Concorde Capital is a full service investment bank operating on the Ukrainian, Russian and CIS markets. In 2007 Concorde Capital’s analytical team was recognized as the Top Team covering Ukraine by Thomson Extel's Pan European Survey. Senior Analyst Alexander Paraschiy was recognized as the Leading Pan-European Investment Analyst – European Emerging Markets. Concorde Capital is a leader when it comes to private placements and M&A deals. Concorde Capital’s sale of a stake in Electron Bank to Volksbank International AG was named the Best Ukrainian M&A deal of the year 2007 by the Adam Smith Institute.