Bothe words and actions

Most of the domestic banks have renewed corporate clients crediting and as the result have shown loan portfolio growth. According to banks financial reporting as of July 2010, 104 of 176 financial establishments increased corporate persons crediting starting from the beginning of 2010.

- Natalia, please tell us about corporate crediting with the JSB “Kyivska Rus”.

- Corporate crediting is one of the main priorities of the JSB ‘Kyivska Rus”. For today the JSB “Kyivska Rus” is one of a few banks that really give out credits. Probability of positive outcome is rather high, and clients receive necessary monetary funds for business development.

Most of the Ukrainian banks just proclaim they renewed crediting, but in fact most of the time they either gave away credits in return of discharged loans and only for trustworthy customers or rescheduled loans by means of executing new agreements to settle old transactions; or new credit requests are accepted, but examination procedure is extremely long and demanding that from the very beginning it means denial. .

- Which criteria should a client meet to receive a credit with the JSB “Kyivska Rus”?

- We offer credit support for business development to those enterprises that successfully adjusted to the recession conditions and showed positive returns of sales and income dynamics compared to 2009 and have positive crediting history.

-What is this selective policy all about?

Now for the JSB “Kyivska Rus” it is very important to attract working businesses, with stabile monetary flow, with development potential, managed by owners or managers with positive business names. Nowadays business feel an urge for additional monetary recourses for development and have an opportunity to use these recourses effectively in order to strengthen positions on the market. Unfortunately, on this stage our bank does not credit high risk start-up projects.

- How important is credit drawing on area? Are there any priority business directions?

- Credit drawing on areas might be different: from credit on replenish current assets to buy raw material to increase load capacity( in this case we talk about crediting line renewal for up to 12 month) to investment projects like equipment purchase or implementation of energy saving technologies and in these cases crediting period is 1 to 3 years. Also our bank is ready to refund credit exposure of other banks clients with positive crediting history with possibility of crediting limits increase. But our main priority is to minimize risks of credits non return.

- Does this mean that banks requirements to borrowers are rather high?

This means that the bank views this subject more carefully. The bank demands to security deposits are moderately hard. Priority is given to estate deposits. And this estate mast be of prior importance to the owner and also be one of the key objects in scheme of work of an enterprise or a group of enterprises. This might be integral property complex, equipment, commercial or residential real estate. There are no hard frames, all is defined by business success and client’s importance to the bank, but preferably the worth of the abovementioned estate should 1,5-2 times exceeded the worth of credits. The JSB “Kyivka Rus” policy has been always aimed at quality loan portfolio formation, minimization of risks and surety of assets.