17.11.2008
When will credit paradise come back?

The following succesion of financial institutions bankrupts only intensifies anxiety of Ukrainians. Leaders of the Cabinet of Ministers has forgotten about their own assurances on that world crisis won't have any affect on the situation in Ukraine.

It should be mentioned that Ukrainian banks really cut down crediting volume. In May crediting portfolio of banking system grew only for 1%. Further this number increased and up to August the rate was already 3%. For comparison last year the average rate of monthly growth was 6%. Soon as for experts opinion there will be no material changes in the situation. Most likely the rate will stabilize at last summer level   -  2,5-3% monthly.

The members of financial market and analysts are concerned that soon non-payment will be in critical situation and economy will be uncontrollable. According to the agency "Standard & Poor's" problematic credits were 75% of all Ukrainian bank portfolio. Although as for NBU version the rate was only 1,3%. In August "Standard & Poor's" stated Ukrainian banking system improvement, emphasizing that amount of problematic loans was 35-50%. NBU in its turn increased the rate to 1,6%.

It also influenced real estate market. For last half a year the prices came to a stop. Developers approach new projects very carefully. Real possibility to get credit on building have those who own plot. And the best thing is signed contract with the client to be. Although nobody can deny that NBU's policy on crediting limitation did only good.

Talking about real estate crediting, one shouldn't hurry. Prices have already stabilized today. But at any moment there can be reduction in price. At the same time rate change even for 1% can influence outpayments greatly. Time is money.

The situation with depositing rates is rather good: the rates are growing. One can earn a lot to the end of the year. If we compare with inflation, the rates will wobbled within the limits of 20%. And inflation will be 16%. In any case you make a profit. It's better to pay attention to long-term deposits. The optimal term is one year or short-term is for 3 months.