Archive for January 18th, 2011

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A return to household lending in Ukraine……

January 18, 2011

Well dear readers, whilst many of my “Western” readers would positively baulk at what is written below, in Ukraine, it is good news and a vast improvement on the current situation…..

Interfax-Ukraine
Mortgage credit rates in Ukraine could fall to 16% per annum by late 2011, down from the 18-20% rates seen as of late 2010, according to the first deputy board chairman of Kyiv-based Subsidiary Bank Sberbank of Russia, Alexander Vedyakhin.

“Over the year, mortgage credit rates will fall, but it will be a gradual fall. If we manage to pass the 20% level and reached 18-19%, at the end of the year we could reach 16%,” he said at a press conference in Kyiv on January 15.

Vedyakhin also said that the down payment for mortgage credits would fall to 25-30% of the property value, while currently it is some 40-50%.

The expert also said the banks would relax the procedure for issuing mortgage credits to individuals, but that the conditions would not return to pre-crisis terms.

He said that the mortgage crediting for the medium and medium-plus housing segments worth from $300,000 to $1 million would mainly develop this year.

The banker also said that Subsidiary Bank Sberbank of Russia from January 15 started issuing mortgage credits in Russian rubles at 14% per annum.

Subsidiary Bank Sberbank of Russia was founded in 2001. Its only stockholder as of October 1, 2010 was OAO Savings Bank (Sberbank) of the Russian Federation.

The bank ranked 27th among the 176 operating banks in Ukraine as of October 1, 2010, in terms of overall assets, estimated at UAH 8.394 billion, according to the National Bank of Ukraine.

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