According to the latest report of the European Parliament, large Ukrainian companies face a serious threat of a wave of defaults due to the lack of necessary currency easing from the National Bank of Ukraine. This situation can significantly undermine the financial stability of the corporate sector and negatively affect the economic stability of the country as a whole.
Despite the partial relaxation of currency restrictions, large Ukrainian companies still do not have the opportunity to settle with foreign creditors. This may lead to a wave of defaults in the corporate sector, and then to an increase in the cost of loans to the state.
Currently, according to Oleksandr Vodoviza, the head of the Metinvest Group CEO's office, the company's loan portfolio is about $2 billion, and 95% of borrowings are made in the West. The situation is the same at Ferrexpo, ArcelorMittal Kryvyi Rih, Interpipe and Kernel.
Meanwhile, the NBU introduced limits on transfers of only a few million dollars a year. For companies that have to pay creditors 200-300 million is a drop in the ocean. This will force companies to declare defaults, which will significantly increase the cost of foreign borrowing for the state of Ukraine.
