Eleven out of 50 largest Ukrainian banks issue credits to buy real estate on secondary market
Eleven out of the 50 largest Ukrainian banks issue mortgage credits to buy real estate on the secondary market, reads a press release of Kyiv-based Prostobank Consulting Company.

Eleven out of 50 largest Ukrainian banks issue credits to buy real estate on secondary market

Nov 4, 2009 at 11:10
Eleven out of the 50 largest Ukrainian banks issue mortgage credits to buy real estate on the secondary market, reads a press release of Kyiv-based Prostobank Consulting Company.

"In October the number of banks that issue mortgage credits to buy real estate on the secondary market more than doubled, to 11 banks," reads the document.

The release says that as of November 2, 2009, BTA Bank, BM Bank, INDEX-Bank, Credit Europe Bank, Kreditprombank, Forum Bank, Universal Bank, Ukreximbank, Ukrsotsbank (all based in Kyiv) Kredobank and Folksbank (both based in Lviv) are issuing the said credits.

Prostobank Consulting said that the increase in the number of banks issuing the said credits is not evidence that the banking system has recovered after crisis.

"The number of proposals on mortgage crediting is not competitive. I would say that this is a positive sign on the way to the market stabilization, and nothing else," the head of the retail business product department at Kyiv-based VAB Bank, Anton Shaperenkov, said.

The experts also said that another reason for slight resumption of mortgage crediting in the country is a desire of some banks to strengthen on the market.

"Banks announced on the start of mortgage crediting could be divided into two categories: those that recently appeared on the Ukrainian market, have foreign funds and don't have a burden of crediting in the previous years, but trying to occupy a market share; and universal banks, which are returning to the previous credit regime and the range of products," the director of the retail business development department at INDEX-Bank, Tetiana Shapoval, said.

Bankers said that soon the fall in mortgage credits rates should not be expected.

"At present, there are no forecasts on the considerable fall in the value of resources, and one should not expects the fall in mortgage credits rates in the near term," Shaperenkov said.

Prostobank Consulting's core business is conducting market research on the retail products of commercial banks.

11:05:53 EET-2

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