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8.1.3 ​Banks specific issues
The National Bank of Ukraine (NBU) has proposed UAH2.4bn of refinancing loans ​for the period from one year to five years to banks at a debut tender held on Friday, May 8, NBU Governor Yakiv Smolii has said. "Today the first tender was held, where banks received UAH2.4bn for different terms from one year to five years. This is the first tender and we will hold it every month," he said during a speech at a meeting of the Verkhovna Rada committee on finance on Friday.
With an overhang of tens of thousands of unsold new apartments in Kyiv, Zelenskiy vowed yesterday to drive down mortgage rates to 10% “in the near future.”​ Six months ago, seven banks offered mortgage loans with developers at rates of 19-20% for up to 20 years up to the hryvnia equivalent of $75,000. The National Bank of Ukraine predicts that mortgage rates could fall to 15% this year, roughly twice the prime rate. Banks are reluctant to issue mortgages largely due to weak creditor rights.
8.1.4 ​Bank news
Net profit at Ukraine's PrivatBank, nationalised in late 2016, jumped by 2.5 times year on year to UAH32.6bn ($1.2bn) in 2019​, the lender said in financial statements published this week. The assets of PrivatBank increased by 11.4% y/y to UAH309.7bn last year. According to the National Bank of Ukraine (NBU), the bank was ranked first among 75 banks operating in the country in terms of assets. In April, PrivatBank said that it had paid UAH2.3bn of refinancing loans to the NBU, fully settling its debt on these loans before the regulator. The lender's debt on refinancing loans received before its nationalisation at the end of 2016 amounted to about UAH7.6bn.
51​ UKRAINE Country Report​ June 2020 ​ ​www.intellinews.com