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
After two consecutive months of positive sentiment, in May Ukrainian businesses worsened their performance estimates. According to the National Bank, the index of expectations for business activity fell to 48 from 52.3 points in April. The mood of Ukrainian enterprises was affected by the increased intensity of hosti... #BusinessExpectation #businessinukraine #nbu #UkraineBusinessActivity #UkraineEconomy #UkraineLaborMarket
These are the main trends in Ukraine’s bank deposits. According to financiers, the decreasing yields on hryvnia deposits will continue until the end of May. However, despite this, hryvnia deposits remain attractive to citizens due to their passive income... #financeUkraine #ForeignCurrencyDeposits #HryvniaDeposits #nbu
The NBU has downgraded its growth forecast for the Ukrainian economy over losses in the energy sector. The National Bank worsened its 2024 growth forecast for Ukraine’s economy from 3.6% to 3% due to the severe consequences from Russia’s missile attacks on energy infrastructure. The central... #ebrd #energyukraine #GDPinUkraine #nbu #UkraineEconomicForecast #UkraineEconomy #WarinUkraine
The NBU explains what the confiscation of Russian assets depends on and how much can be obtained from their profits in 10 years. The European Central Bank (ECB) cannot confiscate frozen Russian assets, said NBU head Andriy Pyshnyi. As he explained, confiscation requires a consolidated decision and a legal basis. “It is ab... #AndriiPyshnyi #ECB #G7 #nbu #RussianAssetsConfiscation #RussianAssetsProfits
Ukrainian businesses cite the risks of discontinuing currency liberalization measures. As stated by analysts, the continuation of currency liberalization is absolutely necessary. Expanding the established limits and conditions for paying dividends and interest on existing debts remains ... #CurrencyLiberalization #CurrencyRestrictions #Interpipe #InvestmentsinUkraine #nbu #ukrainianbusiness
Thanks to OVDP, the return on the Ukrainian banks’ assets increased to 11.6%. According to the National Bank, the return on assets increased by 0.2 percentage points on average over the last year, up to 11.6% in the first quarter of 2024, primarily due to revenues from OVDP ... #CreditPortfolio #nbu #PrivatBank #UkraineBanksProfits #UkraineBond #UkraineDeposits #UkrainianBanks
Renovation of the energy system: Ukraine will develop smart power grids, and banks will support projects to restore energy generation. The Ministry of Energy of Ukraine approved the road map for developing smart networks to automate and implement digital solutions at all levels of the energy system. It is noted that the restoration o... #AndriiPyshnyi #energyukraine #nbu #SmartElectricalNetworks #SmartEnergy
Bank lending to businesses continues to grow in Ukraine. Banks have been increasing corporate lending for three quarters in a row, according to the Review of the Banking Sector for the first quarter. It is noted that the demand for business loans outside th... #AffordableLoansUkraine #eOselya #LendingInUkraine #LoanPortfolio #MortgageProgram #nbu #NPL
The deposit yield for businesses and individuals in Ukraine has fallen. According to the Banking Sector Survey for the first quarter, banks reduced deposit rates for both commercial and consumer loans. The national bank notes that since the beginning of the year, the disc... #BankDepositsinUkraine #DiscountRateUkraine #financeUkraine #nbu #UkraineDeposits #UkrainianBanks
Piraeus Bank Executive: Ukraine’s banking system has shown outstanding resiliency, and international businesses should take note. The Ukrainian Banking Day in London gathered 150 finance executives from all over the world to listen to their colleagues who work in Ukraine and share their views on the financial sector’s cur... #financeUkraine #IoannisKyriakopoulos #nbu #PiraeusBank #UkraineBankingSystem #YannisKyriakopoulos
In the first quarter of 2024, Ukrainian banks increased their net profit by 18% from last year. During the first three months of the year, solvent financial institutions showed a ₴40.5B ($1.05B) net profit. “The main factors in profitability growth in annual terms are an increase in intere... #BankDepositsinUkraine #LendingInUkraine #nbu #UkraineBanks #UkraineBanksProfits #UkraineBond
The NBU predicts that consumer price growth will accelerate moderately in the coming months, although in April, it was lower than the regulator predicted. “The deviation from the forecast was provided by the dynamics of little-forecasted factors of a temporary nature, first of all, a sh... #ConsumerPrices #InflationinUkraine #nbu #pricesinUkraine #UkraineEconomicForecast #UkraineEconomy
What does the NBU think about the new easing of currency restrictions and the return of currency extortion? NBU Chairman Andriy Pyshnyi said: “Our decisions are fully in line with our declared strategy of easing currency restrictions, transitioning to greater exchange rate flexibility and returning to... #AndriiPyshnyi #CurrencyLiberalization #CurrencyMarket #CurrencyRestrictions #financeUkraine #nbu
