First and foremost, project financing or syndicated loans, where several banks work together, will be in demand.
Dmytro Tsapenko, Deputy Chairman of the Board, Head of Ukrsibbank Corporate Business Department, expressed such an opinion in an interview for the annual rating of 25 Leading Banks of Ukraine.
The top manager explained, “Reconstruction will require for involvement of companies from various sectors: construction, building material production, metalworking, etc. These companies use a standard set of loan products: working capital financing, trade, medium-term financing, etc.”.
However, in the future large projects will require long-term financing, such as project financing or syndicated loans, where several banks will cooperate.
Mr. Tsapenko adds, “Now we already have requests for projects being on the verge of project financing and regular financing for large corporate clients. The Ukrainian banking sector has excess liquidity both in UAH and in foreign currency. Therefore, the problem lies in the willingness of banks to take risks”.
To mitigate such risks, banks use distribution programs from international financial organizations, primarily the EBRD. The banker explained, “This allows us to grant loans in favor of clients and projects for which we would not be ready to take risks on our own”.
Source: https://finclub.net/news/vidnovlennia-ukrainy-potrebuvatyme-novykh-kredytnykh-produktiv.html