Serious difficulties lending to Ukrainian banks

The serious difficulties of Ukrainian banks associated with the return to the end of 2008, significant foreign borrowing, which are actively involved in previous years. As well as difficulty in attracting new investments, due to crises in the European financial markets and lower credit ratings significant part of Ukrainian banks. 3. Consequence of the financial crisis was the instability in the foreign exchange market. Although it has more internal speculative in nature, but leads to instability in the interbank foreign exchange market, reducing the NBU reserves, which is forced to sell the currency to meet excessive demand. 4. The crisis has significantly affected the increase in interest rates on loans. This is partly caused by inability to attract foreign loans, which have recently been used for long-term lending, as well - higher prices of resources involved in the domestic market. 5. Consequence of the crisis is the fact that worldwide rescue financial institutions began to challenge the state - it? Poured budgetary funds, as well as taking banking institutions under its control. Given the same political situation in Ukraine is difficult to predict whether the government rescue the banking sector, subject to contagion. Category: Liquidity of the banking system of Ukraine | Tags: credit problems