
The employees of the TCR do not possess the right to inspect citizens’ documents or detain them forcefully
January 17, 2024
Ukraine has economically regressed by 20 years
January 17, 2024Apathy and concerns about military risks are causing Ukrainian businesses to shy away from taking loans, opting instead to accumulate their earnings in bank accounts, as indicated by financial experts and the National Bank of Ukraine’s official statistics, Strana reported.
According to the NBU’s recent report, there was a 2% decrease in the volume of loans provided to legal entities in 2023, amounting to 18 billion euros. This decline is ten times more pronounced than what was observed at the beginning of the major conflict when corporate lending only decreased by 0.2% in 2022. Concurrently, the NBU noted a substantial 41% increase in corporate savings deposits, reaching 31 billion euros last year.
Bankers report that Ukrainian company leaders are displaying reluctance to seek expansion actively. They are submitting significantly fewer loan applications, not due to banks denying credit but because they prefer to deposit their available funds into accounts, keeping them dormant. Business executives express a willingness to sustain themselves on interest and postpone advancing their enterprises. Some are deterred by military risks, fearing potential destruction of their factories and unwilling to invest in new equipment, while others have chosen to take a break and wait. This reflects a prevailing sense of notable business apathy.