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Ukrainian lenders optimistic about lending prospects in upcoming months

Ukrainian banks expect an increase in demand for loans from households and small and medium-sized businesses in the fourth quarter, according to the Ukrainian central bank's latest lending survey.

Lenders also expect that credit standards will be eased for all types of corporate lending, while standards for consumer loans are also expected to loosen slightly.

The survey, which included credit managers from 50 Ukrainian banks, was conducted from Sept. 19 to Oct. 10 and showed that 74% of respondents expect their corporate and retail loan portfolios will grow in the next 12 months, while a record number of banks expect a rise in corporate and household deposits.

In the third quarter, Ukrainian banks saw an increase in demand for corporate and consumer loans, as well as loans to small and medium-sized businesses. This was mainly due to lower costs of borrowing for the first time since 2017, the National Bank of Ukraine noted.