"Ukrainian companies have become more active in attracting financing for investment purposes" – Maksym Tsymbal, Deputy Chairman of the Pivdenny Bank Board
The results of the analysis of corporate clients' financial statements in recent years and over one hundred loan projects of Pivdenny Bank worth UAH 3 billion over the last six months have shown that the majority of business clients are attracting financing for investment purposes, as well as that the level of capitalisation of companies and investment flow is increasing. This was announced by Deputy Chairman of the Board Maksym Tsymbal during the 18th Annual Ukrainian CFO Forum.
“Today we are seeing an increase in the level of capitalisation of corporate sector companies. Over the last 3 years, it has increased by UAH 136 billion. EBITDA is also growing in absolute terms and most of it is invested. These two indicators, as well as a high index of business activity, positively characterise business sentiment in the next 12 months.”
The Ukrainian CFO Forum was held on 29-30 October in Kyiv and was devoted to discussing the "hottest" issues, including: the future of Ukrainian business and its expectations, financial business transformation, building a strategy of sustainable growth in a turbulent period, digitisation and corporate efficiency management, artificial intelligence capabilities for personnel management, development of corporate culture and financial innovations, as well as introduction of modern innovative technologies and ways of solving strategic problems.
During the expert panel of business leaders, Maksym Tsymbal spoke on the topic "What is expected of Ukrainian business and banks in the next 12 months?" He spoke about the bank's macroeconomic research. “We understand that business expects interest rates to fall, but today the cost of resources in the market is determined by the discount rate, and its change has the greatest impact on the value of loans and deposits of legal entities in UAH. By the end of next year, we expect rates to be reduced to 15-16 %, provided that the dynamics of the discount rate are maintained and against the background of the current NBU monetary policy design, as it leads to close correlation between the discount rate and key market indicators."
In the second stream of the CFO Forum, a forum for treasurers was held, during which the director of the corporate business department of Pivdenny Bank, Oleksandr Matyushenko, spoke about new business opportunities and partnership programmes for attracting external financing from multinational companies.
“A significant level of dollarisation of the Ukrainian economy remains a serious risk for both external and internal investors: in the deposit portfolio – 45 %, in the credit – 43 %. Under the current conditions, the best way to attract foreign investment is through the banking sector. These kinds of external sources of financing can be seen as a great alternative and an opportunity to meet the demand in the corporate segment of the business by attracting relatively inexpensive financing in foreign currency. First of all, this type of financing can be of interest to companies in the following agribusiness sectors: plant growing, processing, trade, as well as in other areas of commodity trading,” said Oleksandr Matyushenko.
The Ukrainian CFO Forum is one of the major financial events held annually and gathers executives of large companies to discuss the most pressing issues regarding the Ukrainian financial sector and find effective solutions.