National Bank explained the change in business lending sector


Forex loans lose popularity due to devaluation expectations

Upside Down: National Bank talked about changes in the business lending sector. Photo: Focus

In a May survey of the banking sector by the National Bank, it was reported that in January-March 2020, loans to net hryvnia businesses, excluding a portfolio, excluding reserves, grew by 3.6%. In particular, in March – about 9%.

Hryvnia loans increased due to seasonal and business willingness to reduce obligations on foreign currency loans against the backdrop of expectations of devaluation. In general, foreign currency debt decreased by about 7% in the quarter, partly due to conversion to hryvnia.

The reduction in the discount rate in the 1st quarter also prompted the hryvnia loan to be cheaper for businesses by 13.9% per year. Net hryvnia debt increased by 3.2% in January-March. On an annual basis, growth was 26.6%.

But demand for consumer loans has generally declined. In the first quarter, the growth rate of loans slowed in the population, with a decrease in demand from borrowers and increased risk for lenders against the backdrop of quarantine measures, and interest rates at around 34%.

To reduce the impact of the pandemic on the banking sector and to sustain the economy, the NBU significantly softened regulatory requirements for banks: delayed the introduction of capital buffers and allowed it to leverage customer loans on mutually beneficial circumstances Reorganization allowed.

Summary PAYSPACE magazine

Remember that most banks in quarantine offer borrowers a flexible credit payment schedule, which includes the following options:

  • Debt leave on the body of the loan with interest payments.
  • Full credit holidays represent actual referrals of payments.
  • Restructuring monthly payments in more economical amounts.

Read: The NBU reported that it affects prices in Ukraine.


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