FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINE
The destabilization of the financial and economic situation in Ukraine has led to an aggravation of the problems of financial security assurance in the real economy. However, economy of Ukraine has gradually begun to get out of the crisis, which deepened during 2012–2015. In 2016, GDP growth in Ukra...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
National Institute for Strategic Studies
2018-08-01
|
| Series: | Стратегічна панорама |
| Subjects: | |
| Online Access: | https://niss-panorama.com/index.php/journal/article/view/8 |
| _version_ | 1828745739199578112 |
|---|---|
| author | Nadiia Yurkiv Oleksii Kliuzko |
| author_facet | Nadiia Yurkiv Oleksii Kliuzko |
| author_sort | Nadiia Yurkiv |
| collection | DOAJ |
| description | The destabilization of the financial and economic situation in Ukraine has led to an aggravation of the problems of financial security assurance in the real economy. However, economy of Ukraine has gradually begun to get out of the crisis, which deepened during 2012–2015. In 2016, GDP growth in Ukraine was 2.3 %.
At the beginning of 2017 risks for the real economy increased significantly because of aggravation of a situation in the occupied and temporarily uncontrollable territories. As a result, in the first quarter of 2017 production in metallurgy and coal mining decreased. Risks in agriculture and food industry had increased due to the cold spring in 2017, which led to reduction in yields in comparison with the last year. Additional risk for food industry is the potential decrease in oil exports as a result of sunflower seeds reduction in Ukraine.
Transition to the new methodology of non-performing loans calculation did not have a significant impact on their size and share in the majority of industries. The smallest shares of non-performing loans are recorded in light industry, transport, agriculture, and the largest shares – in construction industry and metallurgy. The largest increase of non-performing loans accrued to trade sector.
Capital investment in the real economy grows mostly at the expense of enterprises assets. Vigorous investment activity is still expected in agriculture, extractive industry, land transport (in particular, railway) and in services sector.
The key priority of the NBU and commercial banks in the medium-term is to resume lending to the real economy. For this purpose it is necessary to ensure normalization of debt burden in corporate sector; improvement of creditors ‘rights protection; enhancing of business transparency and accountability of loan debtors; emergence of real restructuring of enterprises’ debts; reduction of loan interest rates; activation of lending to the real economy enterprises, energy saving, export-oriented, import-substituting and large infrastructure projects at the expense of state banks assets and national banks reform. |
| first_indexed | 2024-04-14T04:10:07Z |
| format | Article |
| id | doaj.art-e5e04cc9155e4eb19b1c7c804f65745a |
| institution | Directory Open Access Journal |
| issn | 2616-9460 2616-891X |
| language | English |
| last_indexed | 2024-04-14T04:10:07Z |
| publishDate | 2018-08-01 |
| publisher | National Institute for Strategic Studies |
| record_format | Article |
| series | Стратегічна панорама |
| spelling | doaj.art-e5e04cc9155e4eb19b1c7c804f65745a2022-12-22T02:13:16ZengNational Institute for Strategic StudiesСтратегічна панорама2616-94602616-891X2018-08-01265738FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINENadiia YurkivOleksii KliuzkoThe destabilization of the financial and economic situation in Ukraine has led to an aggravation of the problems of financial security assurance in the real economy. However, economy of Ukraine has gradually begun to get out of the crisis, which deepened during 2012–2015. In 2016, GDP growth in Ukraine was 2.3 %. At the beginning of 2017 risks for the real economy increased significantly because of aggravation of a situation in the occupied and temporarily uncontrollable territories. As a result, in the first quarter of 2017 production in metallurgy and coal mining decreased. Risks in agriculture and food industry had increased due to the cold spring in 2017, which led to reduction in yields in comparison with the last year. Additional risk for food industry is the potential decrease in oil exports as a result of sunflower seeds reduction in Ukraine. Transition to the new methodology of non-performing loans calculation did not have a significant impact on their size and share in the majority of industries. The smallest shares of non-performing loans are recorded in light industry, transport, agriculture, and the largest shares – in construction industry and metallurgy. The largest increase of non-performing loans accrued to trade sector. Capital investment in the real economy grows mostly at the expense of enterprises assets. Vigorous investment activity is still expected in agriculture, extractive industry, land transport (in particular, railway) and in services sector. The key priority of the NBU and commercial banks in the medium-term is to resume lending to the real economy. For this purpose it is necessary to ensure normalization of debt burden in corporate sector; improvement of creditors ‘rights protection; enhancing of business transparency and accountability of loan debtors; emergence of real restructuring of enterprises’ debts; reduction of loan interest rates; activation of lending to the real economy enterprises, energy saving, export-oriented, import-substituting and large infrastructure projects at the expense of state banks assets and national banks reform.https://niss-panorama.com/index.php/journal/article/view/8financial support, enterprises, real sector of economy, financial security of the state, risks. |
| spellingShingle | Nadiia Yurkiv Oleksii Kliuzko FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINE Стратегічна панорама financial support, enterprises, real sector of economy, financial security of the state, risks. |
| title | FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINE |
| title_full | FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINE |
| title_fullStr | FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINE |
| title_full_unstemmed | FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINE |
| title_short | FINANCIAL ASSURANCE OF THE VIABILITY OF ENTERPRISES IN THE REAL SECTOR OF THE ECONOMY OF UKRAINE |
| title_sort | financial assurance of the viability of enterprises in the real sector of the economy of ukraine |
| topic | financial support, enterprises, real sector of economy, financial security of the state, risks. |
| url | https://niss-panorama.com/index.php/journal/article/view/8 |
| work_keys_str_mv | AT nadiiayurkiv financialassuranceoftheviabilityofenterprisesintherealsectoroftheeconomyofukraine AT oleksiikliuzko financialassuranceoftheviabilityofenterprisesintherealsectoroftheeconomyofukraine |