Ukrainian banks issued 5,626 mortgage loans worth over UAH 4.4 billion in January-July 2021, which is 2.3 times higher than the indicator for seven months ending July 2020 in the number of such loans and three times in volume, the National Bank Of Ukraine (NBU) said on Friday following the results of a monthly survey of banks.
According to the NBU, 974 mortgage loans for UAH 773.2 million were issued in July, compared with 955 loans for UAH 774.5 million a month earlier.
Some 21 banks reported information on the issuance of mortgages in July, and this is the largest number of market participants since the beginning of the survey in 2018, the regulator said.
The NBU said that the mortgage lending market remains concentrated: the five most active banks have concluded 90% of new deals. Loans for the purchase of housing in the secondary real estate market remain the main driver of the market: in July, their share exceeded 90% of all mortgage loans provided both in terms of the number of contracts and in terms of monetary volume, the regulator said.
The survey results indicate that the average size of a loan for the purchase of housing in July decreased to UAH 793,800 from UAH 811,000 in June, including the average size of a new mortgage loan for the purchase of primary real estate dropped to UAH 760,500 from UAH 851,000, and secondary – to UAH 797,000 from UAH 807,250.
According to the NBU, in July, the average effective rate of a mortgage loan in the secondary market rose to 13.35% compared to 13.32% in June, while in the primary market it decreased to 16.82% from 17.28%.
National bank of Ukraine’s official rates as of 14/09/21
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of September 14
One troy ounce=31.10 grams
The Interdepartmental Commission on International Trade (ICIT) has decided to apply the final antidumping duties on the import of cement from Turkey to Ukraine for a period of five years, which, depending on the manufacturer, will range from 32.64% to 50.54%.
As stated in an announcement in the Uriadovy Kurier newspaper on Tuesday, the decision of the ICIT of September 2, adopted after considering a complaint from Ukrainian cement producers, will enter into force 30 days after publication.
According to the document, the ICIT rejected proposals from a number of Turkish manufacturers on voluntary written commitments to revise their prices.
According to the State Statistics Service, imports of cement and Portland cement clinkers to Ukraine, classified according to foreign activity codes 2523 10 00 00 and 2523 29 00 00, in the first half of 2021 amounted to 42,290 tonnes for $1.73 million (all from Turkey) and 237,690 tonnes for $11.77 million (Turkey’s share is 97.2% and 95%, respectively).
In its September report, the U.S. Department of Agriculture (USDA) kept the forecast for the production of Ukrainian wheat in the 2021/22 year (July-June) at 33 million tonnes, and its exports at 23.5 million tonnes, which is in line with the Department’s forecast published in August. In the September report, the USDA also kept the forecast for the corn harvest in 2021/22 at 39 million tonnes, and its exports from Ukraine at 32 million tonnes.
As reported, from the beginning of 2021/22 and as of September 10, 2021, Ukraine exported 10.29 million tonnes of grains and legumes, which is 12% more than on the same date of the previous year. Some 5.92 million tonnes of wheat were exported (4.1% less than on the same date 2020/21), 2.99 million tonnes of barley (a rise of 24.7%), 1.34 million tonnes of corn (2.2 times up); 24,700 tonnes of flour (33.7% less).
Investment in physical capital and infrastructure without sufficient investment in human capital may not give Ukraine the expected dividends, World Bank Vice President for Europe and Central Asia Anna Bjerde has said in an exclusive interview with Interfax-Ukraine.
Bjerde welcomed the fact that policymakers have identified priority areas and recognized the need to mobilize investment. She said this, commenting on the government’s intention to stimulate investment in “growth points” – priority sectors.
She emphasized one important aspect that has not been particularly highlighted in the government’s plans – the importance of human capital. Education, skills, experience, innovation and public health together is, according to a study, the most important resource for sustainable economic growth. This is glue that brings together other factors of production, including physical capital and infrastructure, she added.
As reported, the government has identified five priority clusters that can have the highest multiplier effect for Ukraine: technological production, energy security, life safety, transport and the City of Craftsmen, or the development of local, unique industries. According to the government, stimulating these “growth points” with investments in the amount of $1 billion will give the highest multiplier effect and will lead to economic growth by 1-2% of GDP.
