Ukrainian banks' auto loans far below 2004-2006 figures

MOSCOW. Nov 28 (Interfax) - Ukrainian banks are issuing around 1,000 loans a month for the purchase of new vehicles, which is significantly below the peak figures recorded in 2004-2006, Dmitry Musiyenko, the PrivatBank (Kiev) board member in charge of the retail business, said.

"Auto loans are a small market, unfortunately. In total, some 60,000-65,000 new automobiles will be sold this year. All banks together 'are selling' 1,000 cars a month," Musiyenko was quoted by Ukrainian media as saying at the 'Financial Sector of Ukraine 2024: Results, Challenges, Forecast' conference held by the Association of Ukrainian Banks in Kiev.

As many as 400,000-500,000 new vehicles were annually sold in 2004-2006, which was a more successful period for the auto loan market, he said, adding that 40%-50% of that number were bought using a bank loan, which meant around 200,000 auto loans per year.

However, this market is now on the rise, he said.

"There is demand for cars, and it will probably continue to grow," Musiyenko said.