Ukrainian banks will lower interest rates on deposits in UAH, – the head of “PrivatBank”
Until the end of 2017, interest rates on deposits in Ukrainian banks will be reduced to 10-12% per annum.
Such forecast the head of the largest state in Ukraine “PrivatBank” Oleksandr Shlapak, which he voiced in an interview with the “Economic truth”.
“In my opinion, one of the main problems of the state is high interest rates. Even in years of very high inflation loan rate rarely dropped below 20%. We started with 20% in hryvnia Deposit portfolio. Now our rates at 16%,” – said Shlapak.
The head of “PrivatBank” specifies that the Bank sharply reduced interest rates on foreign currency deposits.
“The currency we are also dramatically reduced. Us foreign currency deposits are only required to provide turnover currency in the Bank, not more. We do not issue foreign currency loans today, so the bet we made is very low. We have almost 40% market share of deposits and I think, as a driver of the market we will be able to encourage the market to reduce the interest rate. If you take steel conditions, to imagine that any disasters in the country will not occur by the end of the year we’ll all be on rates of 10-12% on deposits in UAH”, – predicts Chairman of the Board of “PrivatBank”.
He notes that the Bank’s portfolio there are foreign currency deposits, which were concluded at 12%, sometimes 13%. A new Deposit is made according to two times lower rates: $ at 6%, in EUR – by 5%.
“Subject to full capitalization of the Bank, if you decrease and Deposit and lending rates, the Bank will be unprofitable in 2017. I have no doubt,” – said Shlapak.
Earlier it was reported that of the Ukrainian banks began to “escape” deposits.