Ukrainian banks in 2012 could increase issue of consumer credits by 17.2%, says KreditMarket

Kyiv, April 19 (Interfax-Ukraine) – Ukrainian banks in 2012 could increase the issue of consumer credits by 17.2% compared to 2011, to UAH 98 billion, KreditMarket Director General, Ihor Durytsky, has said presenting a survey conducted by KreditMarket at a press conference at Interfax-Ukraine on Wednesday.

According to the projections of the experts, this year banks will focus on car crediting and issuing short-term unsecured credits in cash and consumer credits to buy goods.

The cash credit market this year will expand by 20-25%, and the share of car sales in credit could increase by 15-20% of total sales of new cars, the share of sales of household appliances on credit will grow to 45-40% of total retail sales. The credit card segment could fall to a state when credits will be issued mainly for wage cards, while mortgage credits will be taken only by those who do not have 25-35% of the sum to buy an apartment and who expects to buy property on the 'bottom' of the market and pay the credit in advance.

Rates for consumer credits this year will remain high and could fall only as a part of discount offers.

"In the first quarter of 2012, the Ukrainian credit market for individuals was reviving after the shock seen in autumn 2011. The consequences of the liquidity crisis registered in August and continued until December inclusively, were overcome by the banking system until March 2012 inclusively. Not only volumes of credits issued have fallen, but credit rates are still high," Durytsky said.