Further reduction in cost of loans to depend on protection of creditors' rights - NBU

The press service of the National Bank of Ukraine (NBU) reported this on its Facebook page following a meeting of the NBU’s management with members of the European Business Association (EBA).

The reduction in discount rate allowed banks to decrease rates on hryvnia deposits to a record 8-9% per annum. Banks today issue loans to corporate borrowers at 11-12% per annum. Further reduction in the cost of resources will depend on the protection of creditors' rights, as banks include the cost of risk in the price of loans.

According to the central bank, monetary policy is not the only incentive to revive lending. The government program “Affordable loans at 5-7-9%” is being actively developed, the mechanism of portfolio state guarantees for business is being launched, and more flexible regulatory approaches to the evaluation of investment projects by banks will be introduced.

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