EBRD to allocate housing loans to Ukrainian banks

The European Bank for Reconstruction and Development (EBRD) has changed a strategy to give loans to Ukrainian banks by allocating credits for mortgage programs to Raiffeisen Bank Aval and Ukrsotsbank. Cabinet's press service reports.

A subordinated loan worth USD 75 million will be given to Raiffeisen Bank Aval for ten years, and a mortgage loan worth USD 50 million for five years.

The EBRD also decided to allocate a long-term loan worth USD 65 million to Ukrsotsbank, which is the fourth Ukrainian bank in terms of its total assets and owned by the Italian-based UniCredit Group.

The banks explained their decision to raise loans at the EBRD in order to diversify the sources of financing and denied the deficit of currency reserves.

According to experts, the presence of foreign stockholders at Reiffeisen Bank Aval and Ukrsotsbank does not guarantee them access to cheap funds under conditions of a world liquidity crisis.

Largest Ukrainian banks have suspended the issuance of housing credits in national currency.