In October-December 2024, state-owned Ukreximbank, Oschabank, and Ukrgasbank (all based in Kyiv) issued loans from two to five years worth about UAH 2.04 billion in the equivalent to five city councils at floating rates, according to the Ministry of Finance.
According to this information, Ukreximbank issued the most loans during this period: two in foreign currency and three in hryvnia.
In particular, in late October and early November last year, the state-owned bank financed the Brovary City Council for EUR 2.2 million at a floating rate of EURIBOR 6M + 3.58% and the Stryi City Council (Lviv region) for EUR 850 thousand at a rate of EURIBOR 6M + 3.63%. In both cases, it is specified that the interest rate, according to the terms of the agreement, cannot exceed 8%. Both loans were issued for five years with a grace period during the first year.
In December, Exim also issued three loans in the national currency: UAH 200 million at UIRD 3M +3.03% to Zaporizhzhia City Council, UAH 125 million to Mukachevo City Council at a slightly higher rate of UIRD 3M +4.73%, and UAH 16.96 million to Sheptytska City Council (Lviv region) at UIRD 3M +4.41%. Mukachevo City Council received a loan for a year, while Sheptytsky and Zaporizhzhia City Councils received loans for five years, with a grace period of up to a year for the former and up to a year and a half for the latter.
The agreements also state that at the time of issuance, these floating rates were 16.3% for Zaporizhzhia, 17.45% for Sheptytska, and 18% for Mukachevo, and should not exceed 21%, 23%, and 25% per annum, respectively.
In turn, at the end of December 2024, Oschadbank issued UAH 840 million to the Lviv City Council under UIRD 3M +3.0%, with the rate being reviewed quarterly. The loan was issued for five years, with a grace period of two years.
This state-owned bank also provided two loans in November: UAH 500 million to the Dnipro City Council at a variable rate with quarterly review of UIRD 3M +2.97%, and UAH 120.8 million to the Kamianske City Council (Dnipropetrovska oblast) at a fixed rate of 13.5% p.a. for the first year and UIRD 3M +3.0% from the second year with quarterly review. Both loans were issued for a five-year term with a 12-month grace period.
Under the terms of the three loan agreements, the interest rate cannot exceed 22% in all cases.
At the end of November 2024, the state-owned Ukrgasbank financed the Dnipro City Council for UAH 100 million: the first year the fixed rate is 13.5% per annum, and from the second year onwards, the floating rate UIRD 12M +3%, but not more than 23%. The loan was issued for a period of 5 years, of which one year is a grace period.
