Credit has become an integral part of modern business, and Ukrainian entrepreneurs are no exception. Almost every business in Ukraine has a certain credit burden, which often dates back to the early 2000s. Back then, during the economic boom, almost everyone received foreign currency loans, seeing it as a source of stability, UNN writes .
However, the crises of 2008 and 2014 dealt an irreparable blow to businesses with such loans. Currency fluctuations led to serious financial problems for many businesses. Loans, which initially looked like a favorable solution, became a heavy burden. As a result, many entrepreneurs have found themselves in a situation where they cannot pay their obligations under foreign currency loans.
In today's economy, it is necessary to find a solution to this problem. As experts say in their comments to UNN, one way to ease the situation is to allow the bank and the client to individually agree on the feasibility of converting a foreign currency loan into hryvnia.
Experts say that allowing the conversion of foreign currency loans for business into hryvnia will bring a number of benefits. First, it will reduce the risk of loan defaults, as entrepreneurs will be able to repay them. Second, it will improve the financial stability of enterprises.
Thus, providing flexible conditions for doing business will be an important step towards Ukraine's economic stability and prosperity.
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One of the representatives of Ukrainian business who have a foreign currency loan that has been in place since 2006 is the owners of the Gulliver shopping center in Kyiv. By the way, at the time of the loan, the company that received the loan had other owners.
Currency fluctuations led to the current owners of Gulliver being forced to restructure their debt in 2020. However, it was not possible to convert the entire loan into hryvnia.