NBU: Ukraine has increased the monetary base

Money supply in April rose by 1.3%, monetary base by 3.2%.

Money supply in April rose by 1.3% – up to 1 trillion 88,987 billion and the monetary base by 3.2%, to 368,357 billion UAH, these preliminary data on monetary statistics the national Bank of Ukraine (NBU) announced on its website on Friday.

According to the Central Bank, money supply growth mainly contributed to the increase of cash in circulation outside banks by 3% to 299,41 billion and the increase in balances on deposits in national currency by 1.9 percent to 438,119 billion.

As pointed out by the NBU, the increase in balances of hryvnia deposits of the population in April was accelerated due to strong wage growth and preservation of the interest in Deposit products of banks because of expectations of lower interest rates by banks on funds raised and revalvatsionnye trend on the foreign exchange market.

At the same time, the hryvnia Deposit portfolio of business by the end of the month virtually unchanged.

Dynamics of credit activity in April remained weak. Balances on credits in national currency for the month rose 0.3%, in foreign currency (in dollar equivalent) declined by 0.1%.

“The slight increase in hryvnia loan portfolio business (0.4%) reflects the growing needs of enterprises for working capital, while the balances of credits granted to the population in national currency remained almost at the level of the previous month”, – said the NBU.

The national Bank also noted that in April continued reduction in the cost of loans to corporate sector in national currency.

“Within a month, the cost of hryvnia loans to businesses fell by 0.5 percentage points (PP) since the beginning of the year – by 2.4 percentage points to 14.3% per annum”, – says the national Bank.

Since the beginning of the year, the money supply fell 1.2%, monetary base – by 3.5%.

The net currency reserves in April increased 25.4% to $4,642 billion, debt of banks for refinancing loans declined by 3.9% to 66,622 billion. With the beginning of the year net foreign currency reserves increased by 9.9%, while debt on refinancing loans fell by 10.9%.