Ukrainian banks are experiencing the highest growth in hryvnia lending since 2015, with plans to ease lending conditions in the coming months. The National Bank of Ukraine (NBU) released the results of its third-quarter bank lending conditions survey, which show that business lending across all domestic currency loans is expected to grow at the highest level in nearly a decade. This growth is attributed to improving economic conditions and increased confidence among businesses.
The survey indicates that banks are optimistic about the outlook for domestic currency lending, particularly in sectors such as manufacturing, agriculture, and services. However, foreign currency loans remain a concern, as banks are not forecasting significant growth in this area. This trend is seen as a positive sign for the Ukrainian economy, as it suggests that businesses are increasingly relying on domestic currency loans rather than foreign currency debt.
Analysts believe that the increased demand for hryvnia lending is driven by several factors, including the country’s economic recovery, improved macroeconomic stability, and the government’s efforts to attract foreign investment. Additionally, the NBU’s monetary policy has played a role in creating a more favorable environment for domestic lending. As a result, banks are planning to ease lending conditions in the near future, which could lead to increased investment and further economic growth.
The data from the NBU survey is a crucial indicator of the health of Ukraine’s financial sector and the overall economy. With loans in hryvnia growing at the highest rate since 2015, this signals that the banking system is becoming more resilient and capable of supporting business expansion. However, experts caution that the country still faces challenges, including inflationary pressures and the need for continued fiscal discipline.