The Lending Rate on Corporate Loans Continues to Decline
In June, the money supply expanded by 1.3% to UAH 1,103.1 billion, driven by a increase in cash outside banks (by 2.4%) and the stock of domestic currency deposits (by 2.0% mom), according to preliminary monetary statistics data for June 2017.
In June, the bank’s loan portfolio in domestic currency increased by 1.8% mom. The stock of corporate loans in domestic currency increased by 1.9% mom, while that of retail loans went up by 1.3% mom.
In June, the hryvnia deposit portfolio rose by 2.0% mom, with corporate deposits increasing by 0.8% and retail deposits up by 3.3%.
In June, interest rates on corporate loans continued to trend downwards. In particular, interest rates on corporate loans in domestic currency went down by 1 percentage point mom and by 3.6 percentage points year-to-date, bringing the annual growth rate down to 13.1%.