Foreign Currency Loans Will Become Available Again
Since January 1, 2011, banks will be able to give loans to the population in foreign currency. This is the date of the end of the moratorium on foreign currency loans for individuals. During the moratorium, foreign currency loans could only be received by individuals for the medical treatment and studies abroad.
However, many banks in January, will still not be ready to change their loan offers so radically, according to Kommersant-Ukraine.
Among the main risks of foreign currency loans banks name the following: the large amount of bad debts in the portfolios of the market leaders, the high cost of internal resources, the absence of long-term external liabilities, the poor level of discipline and income of borrowers.
'What is the point of resuming the foreign currency loans? To artificially widen the circle of potential loan customers? In the context of the described risks, I do not think we should walk into the same trap twice', said Deputy Chairman of Finance and Credit Bank Victor Holub. The market participants think that the foreign loan term will be small - 3-6 months. Large banks are afraid of currency risks, bearing in mind the Ukrainian hryvnia rate drop in 2008 from 4.5 to 8 UAH for 1 USD.