The state-owned Ukrgasbank has started issuing mortgage loans for housing in the primary real estate market under the eOselya program, the bank’s press service reports.
According to the report, the first partner of the bank is the developer Fedorchenko Construction Production and Commercial Company LLC with a facility in Sumy.
Since the launch of the state program “eHouse”, Ukrgasbank has issued loans for UAH 2.2 billion to 1.3 thousand families.
As reported, the eHouse affordable mortgage lending program was launched in Ukraine in October 2022. Contract servicemen of the Armed Forces of Ukraine, employees of the security and defense sector, healthcare workers, teachers, and scientists can apply for a preferential mortgage at 3% per annum for up to 20 years with a down payment of 20% of the cost of housing.
Starting from August 1, war veterans, combatants, IDPs and citizens who do not have their own housing larger than the standard area can apply for the eHouse program at a 7% interest rate.
Seven partner banks participate in the eHouse program: Oschadbank, PrivatBank, Ukrgasbank, Globus Bank, Sky Bank, Ukreximbank and Sens Bank. You can apply for participation in the program using the Diia mobile application.
At the end of 2022, the government capitalized Ukrfinzhytlo by UAH 30 billion through the issuance of domestic government bonds. According to Deputy Prime Minister and Minister of Economy Yulia Svyrydenko, this funding is enough to issue 12-15 thousand mortgages in 2023.
At the end of April, the Ministry of Economy, as the sole shareholder of Ukrfinzhytl, approved repo transactions with these government bonds for up to a year in the amount of UAH 15 billion. Later it was reported that the rate on these transactions could be up to 20% per annum, while the government bonds themselves were issued for up to five years at a rate of 19.5% per annum.
State-owned Ukrgasbank has signed new loan agreements under the state program “Affordable Loans 5-7-9%” for UAH 110 million with Ukrcable Group, a leading cable manufacturer in Ukraine, the financial institution’s press service reports.
“Loan funds totaling UAH 110 million will be used to conduct current business activities, including the purchase of raw materials and supplies for the production of cable and wire products and the rhythmic loading of new equipment, which was also partially financed by the bank,” the statement said.
It is noted that the agreements were concluded as part of the continuation of the 3-year cooperation under the state program.
The bank notes that Ukrcable Group companies actively cooperated with the Kotsiubyno village council, Irpin city council and several military units both during the occupation of Kyiv region and during the recovery.
According to the bank, Ukrcable actively cooperates with electricity producers and suppliers to provide electricity to the population during power outages across the country.
According to the company’s website, Ukrkabel LLC (Kotsiubynske, Kyiv region) is capable of producing 150,000 km of cable per year, with a total area of 60,000 square meters, including 28,000 square meters of production capacity. According to OpenDataBot, the ultimate beneficiaries are Volodymyr Dovbenko (33.34%), as well as Halyna Bondar and Oleh Melnyk (33.33% each).
According to the National Bank of Ukraine, as of September 1, 2023, Ukrgasbank ranked 4th in terms of total assets (UAH 168.6 billion) among 64 banks operating in the country, with net profit for the first half of the year amounting to UAH 2.6 billion.
In the third quarter, the state-owned bank’s network decreased by one branch and now includes 218 structural units across the country.
The profit of the state-owned Ukrgasbank in January-September 2023 amounted to UAH 2.92 billion, while the bank ended the same period in 2022 with a net loss of UAH 3.36 billion, according to the financial institution’s website.
“The target was exceeded by more than UAH 1.05 billion,” Ukrgasbank commented on the financial result.
The operating profit before taxation and deductions to reserves for January-September of this year amounted to UAH 3.25 billion, in particular, in September the bank received UAH 530 million of operating profit, and net operating profit amounted to UAH 299.6 million.
The press service noted that Ukrgasbank is among the five banks with the largest increase in customer accounts: the growth of the hryvnia portfolio of individuals and legal entities in January-September amounted to UAH 2.8 billion and UAH 18.4 billion, respectively.
According to the National Bank of Ukraine, as of September 1, 2023, Ukrgasbank ranked 4th in terms of total assets (UAH 168.6 billion) among 64 banks operating in the country, its net profit for the first half of the year amounted to UAH 2.6 billion.
In the third quarter, the state-owned bank’s network decreased by one branch and now includes 218 structural units across the country.
State-owned Ukrgasbank is launching a lending program for individual entrepreneurs (IEs) under the government’s Affordable Loans 5-7-9% program at 15% per annum without collateral requirements, the financial institution said in a press release on Tuesday.
“We have expanded the opportunities for entrepreneurs to attract financing by adapting our microloan to the Affordable Loans 5-7-9% program. Thanks to this, we can offer financing to individual entrepreneurs at a halved interest rate as opposed to the rate for a standard loan product,” Tetyana Kornienko, Director of Small and Medium Business Department of Ukrgasbank, said in the release.
It is specified that under the terms of the program, individual entrepreneurs can receive loans of up to UAH 1 million to replenish working capital, in particular for the purchase of goods and raw materials, for a period of 1 to 2 years.
It is noted that the bank makes a decision on such loans within one day, after which the credit funds are credited to a virtual card, which customers can use to pay in a retail network or on the Internet.
Ukrgasbank informed that several customers have already taken advantage of the program.
“The first to use the program were entrepreneurs from Lviv and Ivano-Frankivsk, who work in the field of wholesale trade in construction materials. Thanks to the funds raised, they will be able to expand the range of their products,” the statement said.
The state bank considers the requirement of a minimum package of documents, the ability to apply remotely without an in-person visit, the absence of collateral and surety, and a quick decision within 1 day to be its main advantages in microcredit.
As reported, on September 15, the Ukrainian government announced a revision of the terms of the 5-7-9 program, in particular, an increase in the interest rate on working capital loans to 13% per annum.
According to the NBU, Ukrgasbank was ranked 5th among 64 Ukrainian banks in terms of total assets (UAH 167.9 billion) at the beginning of July. Its profit for January-July 2023 amounted to UAH 2.9 billion.
The profit of the state-owned Ukrgasbank in January-July 223 amounted to UAH 2.9 billion, while the bank ended the same period in 2022 with a net loss of UAH 3.5 billion, according to the financial institution’s website.
According to the release, the bank’s assets as of August 1, 2023, reached UAH 158.6 billion, having increased by UAH 26.4 billion since the beginning of the year (excluding the impact of exchange rate differences).
The bank notes that the total portfolio of customer accounts has increased by UAH 23.5 billion since the beginning of the year to UAH 136.1 billion, including UAH balances increased by UAH 17.9 billion.
The financial institution clarifies that the hryvnia deposit portfolio of customers has almost doubled since the beginning of the year, or by UAH 3 billion to UAH 9.1 billion.
This, in particular, made it possible to increase the portfolio of three-month deposit certificates to more than UAH 11.4 billion.
In addition, Ukrgasbank increased its portfolio of domestic government bonds by almost two-thirds over 7 months – by UAH 14.2 billion to UAH 36.3 billion.
At the same time, the volume of lending was lower: since the beginning of the year, almost UAH 5 billion has been provided, of which UAH 2.8 billion was used to finance the needs of agricultural and food industry enterprises, and another UAH 1.6 billion was attracted in the electricity and trade sectors.
“To support trade, exports and imports, Ukrgasbank, which is a leader in Ukrainian trade finance, has implemented 400 transactions for Ukrainian enterprises worth over UAH 6 billion,” the financial institution added.
According to the National Bank of Ukraine, as of July 1, 2023, Ukrgasbank ranked 5th in terms of total assets (UAH 167.97 billion) among 65 banks operating in the country, its net profit for the first half of the year amounted to UAH 2.6 billion.
In the second quarter, the state-owned bank’s network grew by two branches and now includes 219 structural units across the country.
State-owned “Ukrgasbank” provided “Karpaty” Experimental Mechanical Plant (OMZ) wagon building enterprise (Lviv region) with a two-year loan to the amount of UAH 170 mln, including UAH 60 mln granted under the state program “Available loans 5-7-9%”, as press-service of the bank informed.
According to a press release on Monday, such support from Ukrgasbank allowed the company to provide itself with orders, maintain its staff (more than 600 employees) and stable tax revenues to the budget.
“Since the beginning of the war, Ukrgasbank continues to support the national railcar industry by providing financing for the working capital of OMZ Karpaty LLC,” the statement said.
According to the bank, since the beginning of 2023, OMZ Karpaty has built 392 cars, including 291 grain cars, 35 gondola cars, 64 cement cars and two platforms. The company is also developing a new direction – repair of diesel locomotives.
Besides, the production is diversified in the direction of press-compactors production, which are exported to the EU.
The main activities of OMZ Karpaty LLC are construction of freight cars, repair of rolling stock, production of tank containers, tanks, metal structures and hydraulic elevators.
According to the resource opendatabot, in 2022 the company’s income increased by 2.9 times against 2021, to 1 billion 231.5 million UAH, net profit was 13.4 million UAH against a loss of 2.67 million UAH a year earlier.
According to the NBU on May 1, 2023, Ukrgasbank with assets of UAH 164.38 billion ranked 5th among the 65 operating banks in the country.
