Ukrainians are starting to borrow again

Borrowing is gradually picking up pace in Ukraine once again. Consumer lending in hryvnia is beginning to recover, according to Mykola Ivchenko, director of the Forex Club, a research center in Ukraine.

According to the center, portfolios of personal hryvnia loans grew 1.15% to UAH 62.239 billion in November. This indicator has been growing for the last three months as consumer lending revives.

Forex Club Ukraine analysts predict that, despite this growth in portfolios of personal hryvnia loans, this indicator will actually have contracted 0.5% for the year. Steady growth will only appear in 2011, fostered by growing revival in auto loans and loans for basic household goods.

Mortgage lending is expected to revive only starting in Spring 2011 as the banking sector stabilized in Ukraine and the domestic economy begins to steadily grow, along with personal incomes.

Analysts predict that the ban on personal loans in foreign currencies will be extended during 2011. Such lending will only be partly renewed in Ukraine in 2012, as domestic economy stabilizes and the hryvnia strengthens.

Tags: lending