Financing of the defense industry is a priority for Oschad in 2024

Ukraine's defense industry, especially its private segment, is currently developing very dynamically and can become a new driver of the economy in general and lending growth in particular. That is why financing of the defense industry is one of the priorities of Oschad in 2024. This was stated by Yuriy Katsion, Deputy Chairman of the Board of Oschadbank, in his speech at the round table "How corporate business servicing has changed during the war" organized by the Financial Club on March 27, 2024.

According to him, the government is currently working on programs to support this segment, similar to the Affordable Loans 5-7-9% program, which will allow newly established companies, whose pool is now the industry's flagship, to attract bank loans.

Yuriy Katsion believes that one of the recipes for the success of Oschadbank's corporate business during martial law is focusing on priority areas of financing. A balanced client policy, for example, allowed Oschad to increase its corporate loan portfolio in 2023, enter into new loan agreements for more than UAH 27 billion with twice as many clients as last year, despite the general trend of market decline. The growth of Oschadbank's corporate loan portfolio in the fourth quarter of last year exceeded 13%, while the market grew by 2% at the same time.

"Our focus for 2024 will be on supporting strategic sectors of the economy, financing the defense industry, and supporting municipalities, primarily in energy efficiency projects and decentralization of green generation. At the same time, Oschad does not have more than 15-20% of investments in any segment of the economy. We are quite diversified, and the vast majority of loan agreements we have concluded during the war years are not with state-owned companies, but with commercial businesses. Despite all the military risks, 90% of our clients have plans to further develop their business in Ukraine," emphasized the Deputy Chairman of the Board of Oschadbank.

"We are looking forward to the program of lending intensification announced by the National Bank of Ukraine, which is to be presented in the second quarter of this year. I am confident that it will include a response to the main challenge of wartime - war risk insurance for investors. Investment lending is the area that can stimulate economic growth. Thanks to this, the country will achieve the planned GDP growth rates, and banks will be able to increase loan portfolios of clients from the real sector of the economy," added Yuriy Katsion.