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the size of insured deposits, to $21,800. The EU standard is $122,000.
The Deposit Guarantee Fund raised a record $37mn last month in sales of liquidated banks, the Fund reports. Sales included: the 12-story Victoria hotel in Odesa, for $5.1mn; and a central Kyiv office space, for $3.1mn. Reflecting pricing problems and legal clouds over properties, 92% of the 581 auctions did not take place for a lack of bidders.
Three quarters of the 495 loans extended under the government’s affordable mortgage program have gone for dachas, the Finance Ministry reports. In the first four months of the program, 14 authorized banks made a total of $15.5mn in loans – 78% to the ‘secondary’ market. Although the program is designed to help young families buy their first home, banks prefer to lend for weekend homes because borrowers can put their primary residences up for collateral. The interest rate is 7%. Ukraine’s prime rate is 7.5%. Banks are considering another $26mn in loans – 81% to the secondary market.
8.1.4 Bank news
International development banks are lending a total $130mn to two Ukrainian state banks which will provide finance for small and medium enterprises. The EBRD yesterday approved a loan of up to €25mn to ‘green-focused’ projects of SMEs. The World Bank is lending $100mn to Ukreximbank for it finance program supporting export oriented SMEs, Yevhen Metzger, CEO of Ukreximbank, wrote Monday on Facebook.
Ukreximbank, the nation’s third largest bank, is putting up for electronic auction 16 real estate properties put up for collateral a decade ago, before the financial crisis of 2014-2016. At the June 29 auction on SETAM trading system, properties for sale range from a building facing Kyiv’s historic Sofiyiska Square to a one-room apartment in Uzhgorod. Of the 16, six are in Kyiv,
50 UKRAINE Country Report July 2021 www.intellinews.com