Ukrainian monetary market shows continuing growth of balance

The National Bank of Ukraine (NBU) has announced a regular monthly survey "Current trends in monetary market of Ukraine for October 2013." According to the NBU the monetary market in October showed continuing growth of balance, both by bank loans and deposits in national currency with simultaneous cost reduction of the latter, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The total loan portfolio of banks increased 8.6 billion UAH, or 1.0% (since beginning of the year – up 7.2%). As of Nov. 1, 2013, the total debt of borrowers from banks reached 867.6 billion UAH.

Banking market analysts say the growth of loan portfolio is mostly encouraged by local currency loans. Since beginning of the year, the loan portfolio in local currency grew by 9.9% (in October – by 1.3%). Meanwhile, the loan portfolio in foreign currency showed less significant growth – 2.6% since beginning of the year and 0.4% in October.

Priority growth of loans to legal entities is also mentioned by analysts as a positive trend. In October the loan portfolio to legal entities grew by 7.5 billion UAH, totaling 678.1 billion UAH. In October, the balance by loans to legal entities was up 1.1% (since beginning of the year – up 8.3%).

Meanwhile, loans to individuals grew much slower. In October, the total loan portfolio to individuals grew by 1.1 billion UAH (up 0.6%), totaling 189.5 billion UAH (since beginning of the year – up 3.5%).

Analysts said they were encouraged by the continuing growth of deposits of individuals. In October, the total increase of balance on deposit accounts of individuals was equal to 5.3 billion UAH.

In a month, the deposit balance in individual accounts grew by 1.3% (up 17.7% since beginning of the year) – to 430.5 billion UAH; legal entities – down 3.6% (up 4.6% growth since beginning of the year) – up to 211.4 billion UAH.

Analysts say the increase in individual deposits in national currency was equal to 6.1 billion UAH, while deposits in foreign currency dropped by 0.7 billion UAH (in UAH equivalent).

Experts say citizens have not believed the forecasts on imminent collapse of the national currency, which were spread by some mass media. Ukrainians have voted by their hryvnia in favor of confidence to national currency, they add.