Growing steadily: The head of the NBU discussed the unique aspects of lending in Ukraine.

The head of the National Bank of Ukraine (NBU), Andrey Pyshny, reported this.

"Lending has been steadily increasing for over a year in both the corporate and retail segments. According to preliminary data, the net (excluding formed reserves) credit portfolio for businesses grew by 65 billion UAH, or 21%, in 2024, while for individuals, it increased by 62 billion UAH, or 39%," said Pyshny.

According to the NBU head, the growth in lending volumes is a result of both the recovery in demand from businesses and individuals for loans and the increased risk appetite of banks.

Pyshny mentioned that the growth of the credit portfolio is primarily driven by market mechanisms, as the share of business loans under the "Affordable Loans 5-7-9%" program has decreased to 34%. Meanwhile, the corporate credit portfolio is expanding across all bank groups.

"Businesses maintain a moderate debt burden close to pre-war levels, and the ratio of retail loans from banks and non-bank financial institutions to annual household income is only 10%," emphasized Pyshny.

The NBU head also stated that due to intensified competition for borrowers, banks have improved loan conditions, specifically reducing the average interest rate on business loans to 15% per annum, and significantly enhancing the terms for consumer loans.