The Better Regulation Delivery Office (BRDO) assesses growth of the e-commerce market in Ukraine at over 30% every year, IT Telecom Sector Head at BRDO Oleksandr Kurbakov said at a roundtable devoted to e-commerce and smart regulation for the progressive market held in Kyiv. “The e-commerce market in the world is growing at a rate of 23-25% per year. In Ukraine, these rates are much higher – about 30% per year,” he said, citing statistics.
At the same time, Kubrakov said that Ukraine is in the second lowest position in Europe in terms of GDP per capita, the lowest in terms of Internet penetration, and the country is lagging behind the neighboring countries in terms of penetration of bank cards by 10-20%. According to BRDO, the volume of the e-commerce market in Ukraine in 2017 exceeded $50 billion, or 3.2% of the total retail sales. At the same time, the growth rate of e-commerce in Ukraine amounted to about 31%, which is the second highest growth rate in Europe.
“A significant problem for the market is the obligation of the seller to print a fiscal receipt in hard copy at the moment when the money paid for the goods arrive. This practically makes Internet acquiring impossible with payments of more than UAH 7.5 billion per year and cash on delivery in the amount of more than UAH 12 billion,” Kubrakov said. He said that the solution to this problem could be permission to submit receipts in electronic form.
One troy ounce=31.10 grams
Sugar production in Ukraine as of December 4 amounted to 1.517 million tonnes. According to the Ukrtsukor National Association of Sugar Producers, at present sugar refineries in the country have processed 11.25 million tonnes of sugar beets. As reported, Ukraine started a new sugar making season on August 31.
In 2018, the area under sugar beets was 280,000 hectares, which is 13% less than in 2017.
Ukraine exported 560,400 tonnes of sugar in the 2017/2018 agricultural year (September-August), which is 27.2% less than in the previous agri-year. Sugar production in the 2017/2018 agri-year increased by 6.5% and amounted to 2.14 million tonnes. Some 46 sugar factories were operating during the season.
Ukraine reduced crude steel production 1% year-on-year in January-November 2018 to 19.3 million tonnes, according to preliminary data.
The Ukrmetallurgprom (Dnipro) association told Interfax that roll output grew 1% to 16.835 million tonnes, and pig iron production rose 3% to 18.78 million tonnes.
Crude steel production was 1.744 million tonnes in November alone, down 2.5% from October, roll production was 1.473 million tonnes, down 3.6%, and pig iron 1.695 million tonnes, down 5%.
The pace of growth of retail lending in Ukraine in 2019 could be 30-40%, according to bankers polled by Interfax-Ukraine. “In 2019, consumer loans will remain the main component and driver of growth in the loan portfolio of banks and the main direction of retail lending: they now form more than 80% of all retail loans in hryvnias. The growth rate of retail loans may reach 40%, the most dynamic growth will remain in short term loan segments – up to one year, as well as from one to five years,”, Deputy Board Chairman, Director for Retail Business at Credit Dnepr Bank Oleh Pakhomov said.
Pakhomov said that in 2019, GDP growth is expected to slow down to 3% from 3.2-3.5% in 2018, while the consumer segment will be again the driver rather than the real economic sector. At the same time, inflationary dynamics forces the NBU to maintain a tight monetary policy, raising the refinancing rate and thus increasing the cost of the hryvnia resource in the market. In these circumstances, banks will still prefer to place part of their resources not in credit programs, but in risk-free operations with deposit certificates and government bonds.
Board Chairperson of IBOX Bank Halyna Kheilo said that the growth rate of lending to the population in 2019 could reach 30%.
Head of the RwS Bank’s lending department Natalia Holub said that retail lending will grow by 30% next year.
“Given that the average loan term for retail products is two years and the outlined pace, the growth of the retail loan portfolio in 2019 will be 12-15%, and the volume of retail lending will grow by 30%,” she said.
Deputy Board Chairman for Retail Business at FUIB Sebastian Rubaj said that the portfolio of retail lending to banks will grow by approximately 15%.
Director of Retail Banking at Ukrgasbank Oleh Kliapko said that in 2019, the focus of retail lending will shift to high-margin products with short turnarounds. Priority areas will be cash loans and credit cards.
Bankers believe that retail loan rates in 2019 will remain high.
