Kyiv-based Subsidiary Bank Sberbank of Russia started to issue in Ukraine loans in the Russian ruble to buy cars and housing. The interest rate on loans in the Russian ruble is lower than that on loans in the hryvnia, the bank said in a statement.

The bank's first deputy, Alexander Vedyakhin, said that "over the past five years, the fluctuation of the hryvnia against the Russian ruble was no more than 20%, and this is an acceptable exchange rate risk for issuing long-term loans to the public."

"While drawing up the credit terms, we took into account the interests of our clients, because for people planning to make a major purchase, the question of optimizing expenditure on the servicing of credit debt is especially important," Vedyakhin added.

Interest rates on loans in the Russian ruble are 14-15% per annum, depending on the type of credit and the size of an advance payment. Mortgage loans in the hryvnia are currently issued at an interest rate of 16% or more (usually floating rates).

As UKRINFORM reported, a ban on lending in foreign currency was introduced after the adoption of an anti-crisis law in late 2008. As of January 1, 2011, the law automatically lost its effect. The National Bank of Ukraine has not yet taken any decision regarding a ban on foreign currency lending.

According to the NBU, as of October 1, 2010, Sberbank of Russia ranked 27th in terms of total assets (UAH 8.394 billion, UAH 7.95/USD 1) among 176 banks operating in Ukraine.

UKRINFORM