Businesses and housholds have been increasing the volume of loans in hryvnia for more than a year, and rates have decreased to 2019’s level.

In the second quarter, the net hryvnia commercial credit portfolio increased by 20.5% year-on-year, according to the National Bank. Business lending accelerated in all groups of banks, especially in the segment of small and medium enterprises (SMEs). Net hryvnia loans to SMEs grew by more than 25% year-on-year, and their share in the net hryvnia corporate loan portfolio reached 60%. The positive lending dynamics at the NBU are associated with improved conditions and lower interest rates. Interest rates on new hryvnia business loans decreased to 15.2% per annum, which corresponds to the level at the end of 2019. At the same time, the share of loans under the 5-7-9% state program decreased to about 36%, compared to 41% at the beginning of the year. The growth rate of hryvnia loans in the second quarter amounted to 40.1% in annual terms due to card lending by the two largest banks in Ukraine.