Banks are once again ready to lend in foreign currency

Since January 1 expiration of a moratorium on foreign currency loans to individuals (the ban on the issuance of loans in foreign currency contained in two documents - the decree NBU № 319 and anti-crisis laws № 1533-VI "On Measures to overcome the financial crisis in Ukraine ", adopted in June 2009). The fate of foreign currency lending will be resolved in the near future at a meeting of the Board of the NBU. Although the new head of the banking agency has already voice their ambiguous position on this issue." For neutralize threats to economic security in the banking sector, coupled with the accumulation of external and domestic debt in foreign currency bank and its clients, it is advisable to establish a legislative ban on consumer lending in foreign currency natural persons "- said the NBU Sergei Arbuzov. And while the National Bank as a deliberate to fill a legislative "gap" wards of the regulator are preparing to issue foreign currency loans. "I have no doubt that the credit products in the currency will appear in the arsenal of any and all banks. The market is saturated with excess foreign exchange resources and place them in the credits would many banks", - predicts Andrew Onistrat, chairman of the supervisory board of bank "National Credit," write the comments. The first for the issuance of foreign currency loans, most likely, will take "daughters" of foreign banks, which easily can gain access to resources from parent companies. "banks with foreign capital are willing and have the opportunity to resume lending in foreign currency, as access to external resources for them to be more open and cost is lower than the domestic market. In addition, the rapid economic recovery is hardly possible without foreign currency loans, "- says Yuri Rudenko, a senior expert of the market analysts UkrSibbank BNP Paribas Group. Yes, and domestic banks will not fail seized the opportunity to place accumulated during the crisis Monetary resource. "After all, about 50% of deposits attracted by the bank on the date of contribution from foreign currency", - says Anton Shaperenkov, Director of Marketing Retail VAB bank. According to the financiers, after a long stagnation in the credit market, largely due to the high cost of hryvnia loans (interest rates on them range from 20% per annum), the demand for cheap foreign currency loans can be quite high. "cost of foreign currency loans will be calculated based on the weighted average Interest rates on foreign currency liabilities plus a margin around 3-4%, "- explained the director of retail bank lending," Finance and Credit "Sergei Shevchenko. According to the calculations of bankers, interest rates on foreign currency loans at first will fluctuate in the range of 14-15% per annum but by mid-year (if the ban on such lending would not be renewed) to fall to 11-12%. However, a significant increase in the loan portfolio in the currency of the bankers still do not expect. One of the reasons hampering the growth of the grant of loans in foreign currency, and also indirectly affect their price - reservation stringent standards for such loans, approved by the National Bank. "According to natural persons who do not have foreign exchange earnings, the regulator set reserve requirements at the level of 50-100% of net credit risk (depending on the degree of riskiness of the borrower). Although in practice these requirements can be offset by good collateral (real estate and transportation) with coverage of more than two times, up to the current credit risk in accordance with the methodology NBU to zero ", - said Andrei Chernyak, Director of Retail Development Department SEB Bank . Another factor that will restrain the generosity of bankers - the high currency risks. After a sharp devaluation of the hryvnia in 2008, much of the time granted in the pre-crisis currency loans carried over into the category of "problem". "Effect of exchange rate risk for long-term lending is often a factor that makes it impossible to continue normal service commitments by customers. Therefore, lending in foreign currency can be used only for short period of time (no more than three years) and in small quantities. Perhaps the end of the first quarter we will offer a foreign currency lending, but the product range is fairly limited, " - said the director of retail business of JSC "Erste Bank" Tatiana Nadtochy. For this reason, a number of banks and do intend to refuse to grant loans in foreign currency. "The public should take out loans in the currency in which earnings. Foreign currency loans also would be permitted only for enterprises with foreign currency earnings, "- says Yaroslav Kolesnik, chairman of the bank" Forum "Commerzbank Group. Financiers admit that coming now currency" truce "will last long. The bill number 7351 on the protection of the rights of creditors and consumers of financial services, which contains the norm forever prohibiting lending to individuals in the currency was introduced in Parliament late last year. According to experts, the chances of its adoption are quite high. "Therefore, even if for some time, currency crediting of physical persons and will be allowed (after January 1, and before the adoption of this law), it is unlikely the banks will rush his return ", - predicts chairman of OTP Bank Dmitry Zinck. Source: mignews.com.ua