What are the NBU’s plans regarding the key policy rate? Almost all (10 out of 11) of the NBU’s Monetary Policy Committee members support keeping the discount rate at 13%. The NBU notes that the majority believes that the current rate level provides n... #AndriiPyshnyi #financeUkraine #InflationinUkraine #KeyPolicyRate #nbu #UkraineEconomy
Ukrainians are increasing their debt – lending increased by 5.3%. In the second quarter, financial services companies and pawnshops showed an increase in the volume of basic types of services, even against a total reduction of assets by 12.3%. Credit unions and life... #BankLoans #financeUkraine #MicroCrediting #nbu #PawnShops #UkrainiansDebt
The National Bank of Ukraine kept the key policy rate unchanged at 13%. This decision will contribute to the gradual return of inflation to the 5% target in the following years and support the foreign exchange market’s stability, the NBU reported. It is also aimed a... #financeUkraine #foreignexchangemarket #InflationinUkraine #KeyPolicyRate #nbu #UkraineEconomy
National Bank: inflation will grow at a higher rate than predicted. Last week, the State Statistics Service announced that consumer inflation accelerated to 7.5% annually in August from 5.4% in July. In monthly terms, prices increased by 0.6%. However, the NBU noted t... #Hryvnia #InflationinUkraine #nbu #UkraineEconomicForecast #UkraineEconomy
The yield on deposits in Ukraine is falling, and loans are becoming cheaper. The average bank interest rates on new hryvnia consumer deposits in August amounted to 10.6% per annum, which is 0.1 percentage point lower than a month ago, NBU data shows. Interest rates on new cons... #BankDeposits #BankLoans #financeUkraine #nbu #UkrainianBanking
The IMF has worsened its GDP growth and inflation forecasts for Ukraine. The IMF predicts the growth of Ukraine’s real GDP at 3% in 2024 with inflation at 9%, the National Bank reported following the IMF mission. The IMF emphasized that Ukrainian fiscal policy, high ... #GDPinUkraine #imf #InflationinUkraine #nbu #UkraineEconomicForecast #UkraineEconomy
The National Bank eased currency restrictions for businesses starting September 10. Beginning on September 10, Ukrainian businesses will be able to: Purchase and transfer foreign currency to cover carbon dioxide emissions. State-owned enterprises can buy currency and transfer it to ... #CurrencyRestrictions #foreigncurrency #internationalReserves #nbu #ukrainianbusiness
The NBU explains why Ukraine’s price growth accelerated in the summer. In July, consumer inflation in Ukraine accelerated to 5.4% annually compared to 4.8% in June. According to the NBU’s estimates, the tendency toward accelerated consumer inflation continued in Au... #hryvniaexchangerate #InflationinUkraine #nbu #pricesinUkraine #UkraineEconomy
The situation in the Ukrainian labor market increases business costs and the price dynamics for goods and services. According to the September review by the National Bank of Ukraine, the improvement of Ukraine’s energy situation in August contributed to an increase in demand for labor and the number of employees. I... #EmployeeDeficit #JobInUkraine #LaborMarketUkraine #nbu #UkraineEconomy #UnemploymentUkraine
Ukrainians are increasing their investment in government bonds: The share is already 4%. In August 2024, the Ministry of Finance raised ₴29.1B from the issuance of government bonds. Military bonds accounted for ₴6B of the total volume of government bonds issued in August. As of September ... #financeUkraine #investments #nbu #OVDP #UkraineBond
The IMF pushes Ukraine to raise taxes and depreciate the hryvnia, with $1.1B in new financial aid at stake. Ukrainian officials expect the IMF this week to push the country toward faster currency devaluation, lower interest rates, and to increase tax collection efforts to close the country’s budget de... #BudgetDeficit #financeUkraine #hryvniadevaluation #imf #nbu #UkraineBudget
Over the first half of the year, banks increased their profits by 17%. In the first six months of the year, solvent banks earned ₴79B in net profit, 17% more than the ₴67.6B profit obtained in the same period last year. Only seven small banks out of 62 solvent financial ... #IncomeTaxationUkraine #nbu #OVDP #UkraineBanksProfits #UkrainianBanks
The volume of foreign exchange earnings by exporters increased by 16%, but up to $8B still must be returned to Ukraine. According to the NBU, the amount of export earnings received in Ukraine for January-June 2024 exceeded the result for the same period in 2023 by 15.9%, or $3.3B, while the amount of unreturned foreign... #currencyexchange #CurrencyRestrictions #nbu #UkraineEconomy #UkraineExport
Ukrainians are building up hryvnia savings in bank accounts. In July, the amount of funds in household hryvnia accounts temporarily decreased, but at the beginning of August, they recovered and continued to grow without affecting the banking system’s fina... #financeUkraine #HryvniaDeposits #nbu #UkraineBankingSystem
How have Ukrainian bank deposit portfolios and investment returns changed? According to the year’s first half results, as of June the financial institutions with the two largest deposit portfolios were Privatbank (₴490.83B) and Oschadbank (₴201.4B). Also among the lead... #BankDepositsinUkraine #financeUkraine #InterestRate #nbu #oschadbank #PrivatBank #PUMB #UkrainianBanks #UniversalBank
The National Bank predicts a slowdown in inflation next year. The NBU will allow exchange rate fluctuations that will make it possible to maintain control over inflation expectations and achieve the 5% inflation target, said National Bank Chairman Andriy Pyshnyi... #AndriiPyshnyi #InflationinUkraine #KeyPolicyRate #nbu #UkraineEconomicForecast #UkraineEconomy
Banks have issued ₴4B in loans to restore Ukraine’s energy infrastructure, but medium-sized businesses refuse to construct generation capacity and are preparing for downtime. Since the beginning of June, banks have received 1,356 loan applications for energy infrastructure restoration projects totaling ₴40.1B. The NBU confirmed the approval of applications totaling ₴3.97B ... #AndriiPyshnyi #DTEK #EnergyDecentralization #EnergyRestore #LoansforBusiness #nbu #UkraineEnergy
Ukrainians’ interest in hryvnia assets is weakening. In June, for the first time in a long time, there was a reduction in the volume and share of hryvnia time deposits in the banking system despite maintaining positive rates in real terms. The Committee... #financeUkraine #HryvniaAssets #HryvniaDeposits #nbu #OVDP #UkraineBond
In July, Ukraine’s international reserves decreased by 1.8%, but a grant from the US raised August’s total to $40B. As of August 1, Ukraine’s international reserves amounted to $37.2B. In July, they decreased by 1.8%, the National Bank reported. Last month, the dynamics of international reserves were determin... #financeUkraine #GrantForUkraine #imf #internationalReserves #nbu #UkraineBudget2024
The ratio of mortgage loans to GDP in Ukraine is at most 1%: What is happening in this market? The National Bank reported that the ratio of mortgage loans to GDP in Ukraine is 1%, the lowest indicator in Europe. Obstacles to mortgage growth are the uncertain prospects in the real estate market ... #AffordableLoans #AffordableMortgages #eOselya #MortgagesUkraine #nbu
The necessary conditions for further discount rate reductions in Ukraine are no longer present. Thanks to favorable macro-financial trends, the National Bank of Ukraine has reduced the discount rate from 25% to 13% in one year. However, the NBU does not currently see further prerequisites for lo... #CurrencyMarket #financeUkraine #InflationinUkraine #InterestRate #nbu #UkraineEconomy
What threats does the reduction of international financial aid to $21.1B in 2026 pose to Ukraine? The NBU’s basic scenario envisages the preservation of significant volumes of external financing for Ukraine, which, however, will slowly decrease as Ukraine’s ability to fund its budget e... #financialaidforUkraine #LoanForUkraine #nbu #RussianAssetsProfits #SupportUkraine #UkraineBudget
The US and its partners continue to support the reconstruction of the Ukrainian energy industry as winter looms; the import of electricity will cost Ukraine more than $1B. US Ambassador to Ukraine Bridget Brink said that USAID purchased 18 autotransformers for the Ukrainian power grid. The US is also supporting Ukraine’s intention to resume the construction of add... #BridgetBrink #ElectricityImport #EnergyRestore #MykolaKolisnyk #nbu #UkraineEnergy #USAID
The NBU: Profitable Ukrainian companies do not use bank loans. Bank loans are not utilized by operationally profitable companies, which account for about 66% of their total operating profits, NBU data shows. In 2023, 8.6% of companies that borrowed money from Ukr... #BankLoans #LoansforBusiness #nbu #UkraineCompaniesProfit #ukrainianbusiness
After currency liberalization in May, companies’ demand for currency increased to $322M. Forbes has calculated that the additional demand for currency following the introduction of a large currency liberalization program in May amounted to $322.6M. During the liberalization’s introd... #CurrencyLiberalization #CurrencyRestrictions #financeUkraine #nbu #ukrainianbusiness
NBU: Banks will continue lowering deposit rates. Almost all banks expect a further decrease in deposit rates for households and corporations over the next 12 months, according to the results from an NBU survey. In the third quarter, banks expect an ... #BankDepositsinUkraine #Depositrates #financeUkraine #nbu
The NBU: Demand for bank loans is growing in Ukraine. Banks expect an increase in demand for all types of corporate and retail loans and loan portfolio volumes, NBU data shows. Most banks will increase their corporate and retail portfolios, though their ... #BankLoans #CreditPortfolio #financeUkraine #LoansforBusiness #nbu
The NBU leaves the key policy rate unchanged due to accelerated inflation. Ukraine halted a run of three interest-rate cuts after an acceleration in inflation prompted policymakers to signal that easing will only be possible to resume next year, reported Bloomberg. The Natio... #financeUkraine #InflationinUkraine #KeyPolicyRate #nbu #UkraineEconomy
The NBU updated its forecast for key indicators in the Ukrainian economy. The NBU predicts the growth of Ukraine’s GDP in 2024 at 3.7% (April’s forecast was 3%). Economic growth in the year’s first half continued, although it has slowed down in recent mont... #foreignexchangemarket #GDPinUkraine #InflationinUkraine #nbu #UkraineEconomicForecast #UkraineEconomy
The NBU has simplified access of foreign investors to instruments for rebuilding Ukraine. The National Bank of Ukraine has adopted a decision that will allow foreign investors to get direct access to marketable debt instruments aimed at Ukraine’s recovery. Starting on July 24, the li... #ForeignInvestor #InvestmentsinUkraine #nbu #UkraineRecovery #UkraineSecurities
Banks invested 25% of assets in OVDP, so the NBU sees no need for further stimulation. The National Bank believes there is no need to stimulate banks to increase investments in domestic government bonds (OVDP). In January 2023, banks introduced the possibility of covering mandatory rese... #financeUkraine #nbu #OVDP #UkraineBond #UkrainianBanks
The NBU insists on further narrowing the state’s 5-7-9% preferential lending program. The Affordable Loans 5-7-9% state program, despite recent changes that narrowed the financing limit of working capital to ₴5M, is still not sufficiently focused on helping businesses that need it, com... #5-7-9loanprogram #AffordableLoans #financeUkraine #LoansforBusiness #nbu
War risk insurance will initially focus on retail products. According to NBU department director Pervin Dadashova, the NBU is finalizing work on a draft law that will establish a full-fledged military insurance system, which, for the first time, will focus on ... #InsuranceUkraine #nbu #WarRiskInsurance #WarRisks
Deposit yields in Ukraine continue to fall, but loan rates are also falling. In June, the average interest rates on new hryvnia consumer deposits amounted to 10.8% per annum, 0.2 percentage points lower than a month ago, according to the National Bank. Interest rates on new de... #BankLoans #Depositrates #financeUkraine #ForeignCurrencyDeposits #HryvniaDeposits #nbu #UkraineDeposits
Ukraine attracted $55.8B in direct foreign investment in the first quarter. As reported by the Ministry of Economy with reference to the National Bank of Ukraine, the volume of direct foreign investments in the economy of Ukraine (residuals) (equity instruments and debt instr... #ForeignInvestor #investments #InvestmentsinUkraine #nbu #UkraineEconomy #UkrainianEnterprises
In June, the Ministry of Finance attracted more funds from OVDP auctions than it paid out to investors. In June, the Ministry of Finance raised ₴38.41B and $407.33M from the issuance of domestic government bonds. ₴35.3B of the total volume of OVDP issued in June were military bonds. The refinancing perc... #financeUkraine #investments #MiiltaryBonds #nbu #UkraineBond
The NBU has assessed the consequences of the continuing electricity shortage: The demand for workers is falling, the number of emigrants is increasing, and economic activity is weakening. In Ukraine, economic activity weakened in June, and entrepreneurs worsened their business expectations, primarily due to prolonged power outages and a lack of workers in the labor market, according to... #ElectricityDeficitUkraine #EmployeeDeficit #nbu #UkraineEconomicActivity #UkraineEconomy
Due to debt repayment, Ukraine’s international reserves decreased by 2.9% to $37.9B. As noted by the National Bank, June’s dynamics were caused by the NBU’s currency interventions to cover the market’s currency deficit and smooth out exchange rate fluctuations and th... #CurrencyMarket #internationalReserves #nbu #ukrainedebt #UkraineDebtRepayment #UkraineFacility #worldbank
The government predicts an acceleration of inflation in the coming months. As noted by the Ministry of Economy, in January through May the trend of slowing inflation continued; consumer inflation was the lowest in recent years – 2% since the beginning of the year. Annual inf... #ConsumerInflation #InflationinUkraine #nbu #UkraineEconomicForecast #UkraineEconomy
The NBU’s currency restrictions threaten defaults in the corporate sector and an increase in the cost of loans to the state. Oleksandr Vodoviz, the top manager of the Metinvest group, noted: “The largest easing package was introduced in May 2024: businesses were allowed to take foreign currency abroad to pay loans and... #CurrencyRestrictions #Metinvest #nbu #OleksandrVodoviz #UkraineDebtRepayment #ukrainianbusiness
Business expectations in Ukraine worsened for the second month in a row. In June, businesses again negatively evaluated the results of their activity. According to the NBU, index of expectations of business activity decreased to 43.6 from 48 in May. Rising costs due to ele... #BusinessActivityExpectations #businessinukraine #nbu #UkraineEconomicActivity #UkraineEconomy
At the IMF’s request, Ukraine will work on creating a postal bank. Ukraine’s memorandum with the IMF says that the Ukrainian authorities plan to create a specialized bank to ensure access to financial services for residents in remote settlements, de-occupied te... #financeUkraine #financialservices #IhorSmilyansky #imf #nbu #PostalBank #Ukrposhta
The largest Ukrainian state bank predicts interest rate decreases on loans and deposits. As PrivatBank noted, these dynamics will be determined by the reduction of the NBU’s discount rate. A member of the NBU board, Yevhen Zaigraev, noted that the situation with client funds reflect... #Depositrates #financeUkraine #InterestRate #KeyPolicyRate #nbu #PrivatBank
NBU: Life insurance is a potential source of long-term funds for Ukraine’s economy. In Ukraine, there is a significant potential for the development of life insurance, which can become a source of long-term funds for the economy, said the deputy head of the NBU, Kateryna Rozhkova. Th... #InsuranceUkraine #KaterynaRozhkova #LifeInsurance #nbu #UkraineEconomy
Ukraine has a significant imbalance between exports and imports, how does this affect the dollar exchange rate? Oleh Hetman, the Economic Expert Platform’s coordinator of expert groups, notes that because the exchange rate is not free-floating but in in a state of controlled flexibility, the national bank... #currencyexchange #nbu #OlehHetman #UkraineEconomy #UkraineExport #UkraineImport #Ukrainetradedeficit
Ukraine signed a €27B loan agreement with the EU under the Ukraine Facility program. Ukraine and the European Commission have signed a credit agreement within the Ukraine Facility program, which will provide €27B in loans from 2024-2027 to finance the state budget deficit. The Nationa... #EuropeanCommission #financialaidforUkraine #LoanForUkraine #nbu #SupportUkraine #UkraineFacility
Ukrainian bankers predict a further key policy rate decrease to 12%. Seven members of the Monetary Policy Committee of the National Bank have reported the potential to cut the key rate to 12-12.5% by the end of the year, given that the risks to the inflation forecast... #financeUkraine #InterestRate #KeyPolicyRate #nbu #UkraineBankingSystem #UkraineEconomy
Ukraine’s banking regulator names the key risks to financial stability in the banking market. Banks in Ukraine have maintained financial stability and their clients’ trust while increasing lending and their participation in financing the budget deficit, the NBU reported. The regulator states t... #ConsumerLending #financeUkraine #LoansforBusiness #nbu #UkraineBankingSystem #UkraineEconomy
The NBU has characterized the Ukrainian real estate market’s main trends and warn of a possible shortage of new housing. Prices for residential real estate are rising in Ukraine, although demand for it is still low, the National Bank reported. The number of completed deals is much smaller than before the full-scale war.... #HousingsalesUkraine #nbu #PrimaryHousing #RealEstateUkraine #SecondaryMarket
The National Bank has summarized the economic results for April-May. Here are the leading indicators: Inflation in April remained the same as in March – 3.2% annually. This was facilitated by a drop in prices for raw food products and persistent inflationary expe... #BusinessExpectation #InflationinUkraine #nbu #UkraineBudget2024 #UkraineEconomy #UkraineForeignTrade
