22 December 2023, Friday, 17:05 257

Banks step up lending to businesses and population - NBU

Editor: Daria Zubkova

Читати українською

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Banks stepped up lending to businesses and population.

This is stated in the December Financial Stability Report, Ukrainian News Agency reports.

GDP growth significantly exceeded expectations, and inflation slowed sharply.

The discount rate has been decreasing since the middle of the year, but taking into account the improvement in inflation expectations, its current level guarantees sufficient attractiveness of hryvnia savings.

The base scenario for 2024 foresees the continuation of economic growth, single-digit inflation, the controllability of the currency market and the preservation of the attractiveness of hryvnia assets.

Volumes of business loans in hryvnia have been growing for six months in a row.

The improvement of the financial condition of companies and the revival of business activity increased the demand and supply of loans.

Hryvnia corporate lending will continue to be fueled primarily by the state program "Affordable loans 5-7-9%".

It needs a significant revision in order to restore the focus on supporting small and medium-sized enterprises and the effective use of budget funds.

Subsidized lending will gradually disappear for those businesses that have recovered from the crisis.

At the same time, the demand is not only for preferential lending - banks that do not participate in state programs are also expanding their portfolios.

Retail unsecured consumer and mortgage loans are also growing.

Unsecured consumer lending is dominated by two banks, so the segment's concentration is increasing.

Mortgage lending is carried out almost exclusively by state banks under the "eOselia" state program.

The peak of credit losses from the war has passed.

The increased level of credit risks persists for enterprises in a number of industries that are recovering slowly.

Also this year, some agricultural producers are having noticeable financial difficulties due to low domestic prices for their products.

As Ukrainian News Agency earlier reported, the volume of loans issued by commercial banks to the corporate sector and individuals, according to operational data of the National Bank, increased by 1.6% in November to UAH 995.231 billion.