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8.1.2 Loans
NBU increases lending potential of banks by 1.5 times with new capital structure and requirements for its adequacy The National Bank, together with the adoption of the Lending Development Strategy, updated the minimum requirements for capital adequacy standards for banks under a new (three-tier) structure, and from August 5, 2024, banks must comply with the standards: fixed capital adequacy level 1 - at the level of 5.625%, tier 1 capital adequacy - 7.5% and regulatory capital adequacy - 10% and introduced a number of transitional provisions.
Bankers predict an interest rate decrease for business loans in Ukraine.
Following the NBU’s reduction of the discount rate to 13% and the introduction of its lending strategy, banks will be able to significantly reduce interest rates on loans for enterprises in strategic economic sectors, according to the Deputy Chairperson of the Board of Globus Bank, Olena Dmitrieva. She says state banks lend mainly to large enterprises and state institutions. At the same time, commercial banks will focus mainly on lending to small and medium-sized businesses. "Special emphasis will be placed on war risk insurance when granting loans to enterprises in de-occupied territories and territories most affected by armed aggression to enable more banks to use the NBU’s lending strategy. She also pointed out that at URC2024, about 110 international agreements, worth over $16B, were concluded. Therefore, Dmitrieva assumes that this will soon allow new state credit programs to be introduced, aimed at lending to strategic industries: energy, the defence-industrial complex, and agriculture, as well as the purchase of energy-efficient equipment for business
91 UKRAINE Country Report July 2024 www.intellinews.com