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Ukrainian businesses go into standby mode, taking fewer loans and increasing reserves to record levels.

Небанківські фінустанови в Україні наростили прибутки на 12%.

Young businessman in office counts money as profit after a successful deal.

According to the NBU, in 2023 the volume of loans granted to legal entities decreased by 2% to ₴757.5B. If compared with the pre-war period, the reduction is 10 times as large. In 2022, corporate borrowing decreased by only 0.2%, to ₴772.9B.

At the same time, a sharp increase (41%) in commercial savings on deposit was recorded last year, a ₴1.3T equivalent. In 2021, commercial deposits grew by only 18%, to ₴769B, and in 2022 – by 17%, to ₴907.6B.

Bankers note that such a large increase in cash accumulation is abnormal. It is usual for a company to keep a small amount of money in its accounts. However, most of a company’s funds are usually invested in its development and operations – raw materials, equipment, expanded production, increased inventories, etc.

At the moment, the businesses are not moving forward with expansion or development. Some fear military risks and have decided to sit back and wait.

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