Foreign currency loans: To encourage or prohibit?

25.10.2010 12:05
Articles about real estate | Foreign currency loans: To encourage or prohibit? To date, resume foreign exchange lending in Ukraine is inappropriate.

Do not take foreign currency loans, if there is no foreign exchange earnings. Regulate currency lending is not necessarily administrative methods.

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"For this is the National Bank, which rates may be regulatory redundancy to effectively manage the volume of currency loans, making them less accessible to banks and borrowers, thus reducing the risks of exchange rates, writes UBR.

The situation years 2007-2008 showed that the Ukrainian banks and borrowers too much attention to loans in foreign currency, not quantified its risks, "- said Valery Smooth, CEO think tank, the Bureau of Economic and Social Technologies.

Approach to foreign currency lending should be considered individually and personally to the bank believes Vladimir Dubrovsky, Expert Centre for Social and Economic Research - CASE Ukraine.

"This question really need to solve the banks, because if the bank believes that he is able to give such credit to the borrower and the borrower is able to pay it, then - why not. Another thing is that it should be on terror and the risk of the bank.

That is the bank that issued the foreign currency credit, and thus went for several more risky deal, he should not pretend that in the event of failure to return this loan will give him funding. No need to ban it, but you should not be encouraged. Because it's really more risky type of loan.

On the other hand, if the borrower has an income in foreign currency, or its revenues are paid in UAH, but denominated in foreign currency, then why not "- he said.

Recall, for almost a year Ukraine actually lives without foreign currency loans. After the devaluation of the hryvnia in late 2008, the portfolio of foreign currency loans in UAH equivalent peaked - 433 800 000 000 UAH. The planned repayment of these loans has led to the fact that by 1 June this year, their volume becomes smaller hryvnia loans, falling to 343.75 billion USD. Bankers call this dynamic natural.
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