Loans in foreign currency ban

06.09.2010 14:58
Director of the Department of Foreign Economic Relations of the National Bank Sergei Kruglik talked about whether to allow the regulator to lend to individuals in foreign currency. "As shown by the crisis, a large amount of foreign currency lending has led to a narrowing of the scope of the hryvnia and the emergence of potential foreign exchange risks for banks and their customers. Therefore, the National Bank does not support the resumption of foreign currency lending in significant volumes, particularly of individuals "- the official said.

According to him, the other side of foreign currency lending is a simultaneous increase and for the banks and their customers-borrowers the risks associated with exchange rate fluctuations on the domestic market. Growth of the cost of servicing foreign currency loans to domestic borrowers, banks 'customers as a result of currency fluctuations negatively affected and the solvency of borrowers, and the quality of banks' loan portfolios.

Accordingly, the National Bank of Ukraine is taking steps to managing risks in the banking sector, linked in particular, with the burden of external debt of banks and domestic borrowing in foreign currency.
Content tags: Mortgages
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