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 retail portfolios somewhat less. Banks expect a certain deterioration in the quality of household loans, while the quality of business loans, in their opinion, will remain the same.

Demand for loans from small and medium-sized businesses has grown for five consecutive quarters, given the need for capital investment and working capital, lower interest rates, and debt restructuring needs.

The population’s demand for loans grew in the second quarter thanks to better consumer sentiment, better prospects for the real estate market, and low mortgage rates.

Banks assessed the debt burden of enterprises in the second quarter as average and the indebtedness of the population as the lowest in their observations since 2016. The approval rate for consumer loan applications increased, considering the weakening of collateral requirements for mortgages, the increase in the volume of loans, and the reduction of interest rates and commissions for consumer loans.