Page 44 - UKRRptAug23

8.1.2 Loans
The number of loans taken out with state guarantees doubled in June. In June, banks issued 2,116 loans under the state guarantee program on a portfolio basis, which is over 100%, or 1,129 loans, more than in May, reported the Ministry of Finance. The volume of issued loans increased by UAH 1.13B, or 26.1%, and amounts to UAH 5.46B, with the share of principal debt obligations guaranteed by the state amounting to UAH 2.87B. The Ministry of Finance added, "As part of the support for micro, small, and medium-sized businesses in Ukraine since the beginning of the use of the state guarantee instrument in December 2020, 25,789 loans have been issued for a total amount of UAH 83.42B ($2.28B)," the Ministry of Finance informs. As of July 1, 2023, 29 banks have issued more than 19,300 loans worth UAH 58.35B. The share of principal debt obligations partially secured by state guarantees amounts to UAH 28.18B or 78% of the total limit of guarantees provided.
Ukrainian banks plan to ease lending for businesses and the public. In the third quarter of this year, banks plan to ease lending conditions for small and medium-sized businesses, reported the National Bank of Ukraine. The central bank made this decision in response to five triggers. The first is Demand- Since the war, there has been an increase in the demand for consumer loans and the number of approved business loan applications. And, as expected, the volume of both business and household loans will continue to grow in the next four quarters. The second is the quality of loan portfolios. Banks continue to expect a certain amount of deterioration in the quality of their business credit portfolio, but the share of respondents with negative expectations has gradually decreased. The third is credit standards for business. In the second quarter, these were slightly increased. Most are for long-term and foreign currency loans. At the same time, in the third quarter banks plan to relax corporate lending standards for SMEs, short-term, and hryvnia loans. The NBU recorded an increase in the number of approved applications for business loans. The fourth is credit standards for the
44 UKRAINE Country Report August 2023 www.intellinews.com