State banks would support the construction

The National Bank requested the Government to strengthen the mechanism of lending to priority sectors and to reduce borrowing rates. The main priority is the construction industry. Major creditors - the state banks. Construction industry in the first quarter of this year has finally begun to show signs of recovery. According to Goskomstat construction volume in the first quarter of this year increased compared to the same period last year to 6.8% (up 7.8 billion UAH).. So that the optimism among builders of a few were added, although specific reasons for being proud is not yet that neither they themselves nor the officials responsible for the state of the industry. Firstly, because the current growth was formed partly because of low statistical base in January-March last year, when the volume of construction work decreased immediately by 21,5%, even in comparison with the crisis first quarter of 2009. Secondly, the current improvement is due mainly to government spending, leading active preparations for Euro 2012. For example, among enterprises, greatly increase the workload, the builders of bridges, road bridges, tunnels and subways (3,7 times), as well as roads, airfields and sports facilities the device surfaces (1,6 times). So the statistics speak for themselves. Private equity is still going into the construction industry is not too happy, even though the state and has already announced a significant simplification of licensing procedures in the industry. In 2010 (the most recent data not yet published), fixed capital investments in the sector amounted to only 82,2% from the 2009 level, and only a paltry 2.9% - of all assimilated capital investments last year. As for bank construction loans, in March they were, according to the NBU continued to decline in both corporate and retail sectors. Since bank loans to non-financial corporations in the acquisition, construction and reconstruction of real estate on the results of March amounted to only 13,2 billion UAH. - Or 72% of the peak in 2008 Construction Loans of households (80.3 billion USD.) Also did not grow until this year. And although at first glance, they do not noticeably inferior compared to 2008 (88.4 billion), such visibility is only created by the existence of statistical incidents. Since about 90% of construction loans to individuals before the crisis had currency origin, onaya of significantly risen in the hryvnia equivalent of reasons for what happened in autumn 2008 devaluation. There is just two constraints on bank lending to the construction industry. Chief among them - became apparent after the crisis began the huge risks of lending sector due to the existence of which banks have been slow to issue construction loans. However, this problem may soon be solved - the financiers rely on the speedy adoption of BP's law on the protection of creditors' rights and consumer financial services, adoption of which is a requirement of the program of cooperation between Ukraine and the IMF. The presence of the item in the program is justified by the fact that count as a qualitative improvement of the banking sector and eliminating key risks to the financial system without adequate protection of investors and creditors, as international practice shows, is not necessary. Another important factor of low credit activity in the industry - high interest rates, to finding ways to reduce the bankers are calling not only to potential borrowers, but also the government. But how to do this if the banks today - a huge shortage of credit needed for housing long-term resources, which would be an acceptable cost. Therefore, without government support, to cope with this problem on their own they are unlikely to. But if government support is limited so far mainly appeals and requests, or reduce to an increase in budgetary allocations, the NBU is looking for ways to solve this problem. Proposed by the National Bank to the Government a way to play a key role in promoting the construction industry to the state banks. The mechanism provides for NBU target refinancing secured government bonds issued by the Government. Fortunately, with resources from state-owned banks, the situation is like a good idea. Today's capitalization Ukreximbank and Oschadbanka (17.5 billion and 16.6 billion USD., Respectively) is the highest in the system. That allows both agencies to realize sufficient scale projects. In addition, Ukreximbank earlier this year to implement one of the most iconic of transactions in the financial sector. Three-year Eurobond issue hryvnia for 2,3 billion UAH. at a rate of 11% per annum, not only set a precedent for similar transactions for Ukrainian borrowers, but also significantly improved the resource capabilities of the institution. Following their counterparts in the international market came out and Oschadbank, posted the five-year Eurobonds for $ 500 million with a yield of 8.25%. However, this does not mean that loans will be issued free of charge. State-owned banks - commercial structures, and therefore will be credited only economically profitable projects. A unique feature of the proposed mechanism yet - securitization formed at lending assets. In simple terms it means that based on the loans and received at the same collateral shall be issued special securities, which will then be re-sold to both foreign investors and domestic. But due to the obtained in this case money will be repaid by refinancing loans NBU. Remains an open question as to such a scheme - or rather, her participation in the National Bank would react to the IMF, which is currently the NBU has been consulting. Their result, despite a pause in the financing of official Kiev by the Fund, has a very good chance of being positive. Unlike the government, cooperation with the National Bank still satisfy foreign donors, although the NBU is not so, and always yielding to the demands of creditors. As an example, in discussions about the exchange rate flexibility, which is not the first call in the IMF from the National Bank. Today's range of fluctuations in the hryvnia exchange rate against the dollar is unlikely to meet representatives of the Fund, but the Ukrainian side can find the necessary arguments to defend its position and the IMF functionaries - to recognize their validity. "We have had and are very productive discussions with the National Bank, - said during the April 26 roundtable Max Alier, IMF Resident Representative in Ukraine. - We have a very good cooperation and really satisfied with the achievements that we can demonstrate in this way" . So that the correct arguments in negotiations with the IFIs, if necessary, can always be found. Would be enough desire. And professionalism. Source: delo.ua