The implementation of 70-80% of construction projects in Kyiv and up to 90% in Kyiv region has been suspended, said President of Consol Ltd. firm and the managing company of Ukrrosbud Volodymyr Konstantinov.
"The construction industry is one of the most affected sectors of the Ukrainian economy. Some regions face an even more difficult situation compared to that which we projected earlier. It is especially [seen] in Kyiv, where the implementation of 70-80% of construction projects has been suspended, and in Kyiv region [where the figure is] up to 90%, the company's official Web site quotes Konstantinov as saying.
He said the key reason for the suspension of construction is the halt in bank lending to construction firms and their clients.
"They [the commercial banks] have virtually given up financing the construction process, which in many cases became sluggish or stopped completely," he said.
The situation in the Autonomous Republic of Crimea looks better: only 30-40% of construction projects in Crimea are at a standstill.
"Crimea, on the national background, looks better off compared to other regions: 30-40% of the construction projects are frozen there. During the holiday season, the residents of Crimea earned decent money, and real estate is known as the most favorable, lossless sphere for capital investment, more so amid the financial crisis," he said.
