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Ukrainians have begun to borrow money more actively and increase their deposits, but experts predict a rate decrease.

The NBU continues to increase the sale of foreign currency, and Ukrainians are buying fewer dollars.

Hands with cash money at bank office or currency exchanger

The head of the Finance Committee, Danylo Hetmantsev, commenting on NBU data, notes that lending increased slightly in March but generally stagnated. The balance of hryvnia loans granted to businesses and consumers increased by 1.9% (+₴13.7B) in March compared to February and by 7.1% (+₴49.4B) compared to March last year. Loans to consumers occupy 30% of the total loan portfolio, and corporate loans 70%.

The regulator explained that the increase in the number of consumer loans was due to more consumer activity, including card lending, and the volume increase under the affordable mortgage program eOselya.

At the same time, according to the first quarter results, business and household bank deposits in hryvnias reached ₴1.635T. In March, they increased by 1.7% (+₴27.7B) and since the beginning of the year by 0.4% (+₴6.8B).

At the same time, bankers note that the NBU’s promise to continue reducing the discount rate puts pressure on deposit rates for individuals, which banks have already started to lower.

 

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