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Lowering the key rate is necessary, but this is not the only condition.
Reducing credit rates in Ukraine to 12% per annum is a real challenge, National Bank Governor Ukraine Yakiv Smolii told reporters, commenting on whether the relevant statement by Prime Minister Oleksiy Honcharuk was realistic.
"These are absolutely real numbers given the cost of resources. If we declared a key rate at 8% and the margin where banks put their risks could be reduced to 3-4%, we get 12 – it's pure math," said Smolii.
The NBU chief emphasized that lowering the key rate is a necessary step, but this is not the only condition. The implementation of the law on the protection of creditors' rights, as well as judicial reform, is required.
Read alsoNBU cuts key policy rate to 16.5%
Smolii said, if combined, these actions will make allow reducing the cost of loans for businesses and citizens.
As UNIAN reported earlier, Prime Minister of Ukraine Oleksiy Honcharuk during his address to the Verkhovna Rada called cheaper loans one of the main priorities of the new government.
The National Bank today, Sept 5, announced a decision to reduce the key rate from Sept 6 to 16.5% per annum after it decreased in July to 17% per annum.