Quarterly Incomes Rise By 40.8% To USD12.8 Bn

The payment of wages and salaries in 1Q05 increased by 30% yoy to USD4.3 bn, while profit and mixed income grew 24.3% yoy to USD1.1 bn and social benefits increased by 58% yoy to USD5.9 bn. In 2004, incomes for the general population increased by 24.8% yoy, or USD 9.9 bn to USD 49.9 bn. Concorde Capital: The remarkable growth in social payments demonstrated in 1Q05 came after the previous government increased social benefits on the eve of president elections. Yushchenko?s government accepted these social obligations and even significantly expanded its social program for 2005. As a result, in 1Q05 the share of social benefits as a portion of income rose to 46.2%, compared with 41.2% in 1Q04. We expect the social component of total incomes to continue growing this year, as the amended 2004 Budget calls for annual social payments to be ~USD6.3 bn higher than in 2004.