Financial sector news

The National Bank of Ukraine (NBU) expects banks with foreign capital to actively participate in the restoration of the country's energy generating capacities destroyed by Russian aggression. This is stated in a post on Facebook by NBU Governor Andriy Pyshnyi. The NBU Governor also noted that the restoration of the country's energy generating capacities is a matter of national security. The banking system of Ukraine is ready to prioritize this area among its tasks and provide support in the implementation of relevant projects.

Andriy Pyshnyy emphasized that the country is currently facing a significant electricity shortage due to the destruction of the energy system as a result of targeted missile attacks. For several days now, emergency power outages have been introduced in virtually all regions. Experts warn of growing risks to the smooth functioning of the energy infrastructure this summer and fall, so action is needed immediately.

“The potential need for financing in this area is very high. The banking system's capabilities are in the area of lending. This can be credit support for projects to build a large number of distributed small generation facilities, which are relatively safe in terms of risk concentration and the threat of asset destruction. Or much larger projects that can be financed, for example, through consortium lending, where banks pool capital and share risks among themselves,” the NBU Governor emphasized.

Andriy Pyshnyi also noted that various options are being analyzed, and the regulator is ready to adapt certain requirements for banks to promote these projects as quickly as possible. “We are analyzing various options and, for our part, are ready to adapt certain requirements for banks to ensure that the relevant projects move as quickly as possible,” he added.

The first meeting with banks with foreign capital operating in Ukraine has already been held. “Today we have already held the first meeting with banks with foreign capital operating in Ukraine. It is important to start discussing this issue with them, as banks with foreign capital have enormous financial potential and expertise that should be involved in solving the problem,” said the NBU Governor.

He also thanked the banks' representatives for their willingness to carry out in-depth preparatory work. “I am grateful to the banks' representatives for accepting our message and being ready to conduct in-depth preparatory work at the staff level to identify the available capabilities and the most critical areas to which they can potentially be applied,” said Andriy Pyshny.

The NBU Governor emphasized that the banking sector is already doing everything possible, but the demand for investment business loans is recovering rather slowly. “The banking sector is already doing what it can and should do, but objectively, the demand for investment business loans is recovering rather slowly. We need real projects!” he said.

“This is a complex and difficult issue: the demand can be expected to be boosted by maximally simplifying administrative and licensing procedures and a separate state support program, creating competence centers that combine technical and licensing expertise of government institutions, regional aspects and financial capabilities,” the NBU Governor added.