Over the past three years, Ukrainian companies have significantly increased their financial reserves, reducing their net debt by approximately $21 billion. This has been achieved by cutting back on borrowing by $2–2.8 billion, increasing deposits by $16–17.7 billion, and investing $2.4 billion in domestic government bonds, reports the Baltimore Chronicle, citing NV Бізнес.
Despite holding substantial funds, businesses are hesitant to invest. The main reasons lie in the elevated risks related to the war and the potential for capital outflows once currency restrictions are lifted. Experts warn that, under unfavorable conditions, Ukrainian firms could transfer over $15 billion abroad, posing a serious threat to the country’s economy.
According to the National Bank of Ukraine, in 2023, corporate lending decreased by 2% to UAH 757.5 billion, while corporate deposits surged by 41%, reaching UAH 1.3 trillion.
The key barriers to investment include war-related risks, lack of transparency in business practices, and low trust in public institutions. Experts emphasize that without active domestic investment from Ukrainian companies, attracting foreign capital will remain limited.
Earlier we wrote that bank of England plans fastest interest rate cuts since 2008.