According to the latest report from the European Parliament, large Ukrainian companies are facing a serious threat of a wave of defaults due to the lack of necessary currency easing from the National Bank of Ukraine. This situation could significantly undermine the financial stability of the corporate sector and negatively affect the economic stability of the country as a whole.
Despite the partial easing of currency restrictions, large Ukrainian companies still have no way to pay off their foreign creditors. This could lead to a wave of defaults in the corporate sector and, subsequently, to higher borrowing costs for the state.
Currently, according to Oleksandr Vodoviz, head of the office of the CEO of Metinvest Group, the company's loan portfolio is about $2 billion, and 95% of borrowings are made in the West. The same situation is with Ferrexpo, ArcelorMittal Kryvyi Rih, Interpipe, and Kernel.
Meanwhile, the NBU has imposed limits on transfers of only a few million dollars per year. For companies that have to pay 200-300 million to creditors, this 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.
