On 20 May 2003, the Western NIS Enterprise Fund released an economic impact study showing that its investments in Ukraine and Moldova were generating an eight-fold increase in economic activity in the two countries.

WNISEF was created in 1994 and capitalized by the U.S. Government with $150 million for investment in small- and medium-sized companies in Ukraine and Moldova. A PBN client since 2000, WNISEF's outstanding portfolio stands at $57 million invested in 15 Ukrainian and Moldovan companies.

The study, "Economic Impact of WNISEF Portfolio Companies on Ukrainian and Moldovan Economies," was conducted by the International Center for Policy Studies and found that for every one dollar invested by WNISEF another $8 in direct, indirect and induced economic activities were generated. This translates into a total economic impact of $564 million on the regional economies from 1997-2002.

The study, which assessed the business activities of 12 of WNISEF's 15 portfolio companies, found that WNISEF's investments support the following economic activities:

• 10,690 jobs were sustained, resulting in more than $50.97 million in wages and benefits;
  
• $63 million was paid in local and national taxes; and,
  
• $560,000 was spent on charities and community development.
  

"The study is very important for WNISEF and our portfolio companies. More importantly, I believe these are the most conclusive indications of what additional investment in Ukraine and Moldova can do for these two economies," says Natalie A. Jaresko, WNISEF President and CEO.

Dennis A. Johnson, WNISEF Chairman of the Board of Directors, adds: "It is essential and extremely useful to have specific and real results from which to draw these conclusions. It helps Ukrainian and Moldovan policymakers to understand the necessary steps to promote better investment climates as a means of improving both economic activity and social welfare of society."

"The level of investment is the main sign of trust from foreign companies in the actions of government. Our main objective today is to continue protecting foreign companies working in Ukraine, secure Ukraine's accession to the WTO, establish a free trade zone with the EU, and tax reform," explains Valeriy Khoroshkovskiy, Minister of Economy and European Integration of Ukraine.

In Ukraine, WNISEF's major portfolio companies include AVK, Ecoprod, Euromart, Micro-Finance Bank, Slobozhanska Budivelna Keramika, and Troyanda. Agroindbank, Glass Container Company, Micro Enterprise Credit and Roua Univers are among WNISEF's investments in Moldova.

Email Myron Wasylyk: myron.wasylyk@pbnco.com

For more information about WNISEF: http://www.wnisef.org/