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Rise of interest rates on deposits

Ukrainian banks have increased deposit rates Rates were increased in average by 1-3% in the last month.

UIRD (Ukrainian index of interest rates on deposits of natural persons) also reached a record figure - the index of deposits in UAH for 12 months on June 25 reached 16.82.

The growth trend in deposit rates initially may seem positive, since it would increase the income on deposits, but in the long term it will affect interest rates on loans. And if for individuals the waiver of loans is not so critical, enterprises will experience higher prices of means more painful.

The tightening of credit conditions will primarily affect enterprises with a high need for working capital, as well as with major investment programs. However, according to the National Bank, currently the cost of credit in Ukraine is still far from highs of this year.