Businesses reduce hryvna deposits by UAH 9.1 bln in Sept, while households gain UAH 17.8 bln in Ukraine - NBU

MOSCOW. Oct 15 (Interfax) - The national currency deposits of legal entities are declining for the second month in a row, as they dropped by another UAH 9.09 billion to UAH 929.17 billion in September, while hryvna deposits of households rose by UAH 17.80 billion to UAH 767.54 billion, Ukrainian media reported, citing the National Bank of Ukraine (NBU)'s statistical data.

As for foreign currency deposits, businesses reduced them more drastically, by 2.2%, or by $226.3 million, to $10.24 billion, while the increase in foreign currency deposits of households was smaller, by 1.3%, or by $129.6 million, to $9.75 billion.

This resulted in a total volume of deposits in Ukrainian banks in hryvna equivalent falling by 0.2% to UAH 2.56 trillion in September.

The average rates of newly issued hryvna deposits of legal entities grew by 0.1 percentage points in September to 8.6% per annum, while for individuals they went down by 0.2 percentage points to 10.4% per annum, it said.

The average rates of foreign currency deposits of businesses and households remained at the level of August, at 0.9% and 1.1% per annum, respectively.

The total loan portfolio of banks grew by 1.2%, or by UAH 13.56 billion to UAH 1.104 trillion in September, it said. Hryvna loans to businesses have been growing for the eighth month in a row, as in September they gained another 2%, or UAH 11.52 billion to UAH 575.91 billion, while foreign currency loans to legal entities decreased by $13 million to $5.99 billion.

The average interest rates on national currency loans to businesses rose by 0.1 percentage points last month to 14.7% per annum, while those for foreign currency loans dropped by 0.2 percentage points to 6.4% per annum.

As for households, hryvna loans to them have been continuously growing for nine months in a row, as their amount increased by 1.3%, or by UAH 3.27 billion to UAH 254.99 billion in September, while foreign currency loans declined by $1 million to $303 million.

The interest rate of national currency consumer loans remained at 33.8% per annum, while that of foreign currency loans rose by 1.8 percentage points to 15.1% per annum.

The interest rates for interbank loans went down by 1.7 percentage points to 11.6% in September, in particular, for overnight loans by 0.8 percentage points to 11.9% per annum.

As reported, the NBU Board decided to keep its key policy rate at 13% from September 20, but to lower the rate on three-month deposit certificates and refinancing loans by 0.5 percentage points and 1 percentage point, to 15.5% and 16%, respectively.

The inflation rate in Ukraine reached 1.5% in September from 0.6% in August and zero in July, and the annual inflation rate soared to 8.6% from 7.5% in August and 5.4% in July.