Fitch worsens outlook for Ukraine banks due to coronavirus.

Fitch has revised banking sector outlooks to negative for seven of the eight markets it covers in the region.



The economic pressures resulting from the spread of the coronavirus and the lower oil price are credit negative for banks in Ukraine and neighboring markets, and could result in negative rating actions, Fitch Ratings says.

Fitch has revised banking sector outlooks to negative for seven of the eight markets it covers in the region – Ukraine, Russia, Kazakhstan, Armenia, Azerbaijan, Belarus and Georgia.

"The degree of pressure on banks will depend on the extent and duration of economic slowdowns, the specific exposures of national economies and external finances, the policy responses of national authorities, and individual banks' business profiles, risk exposures and financial metrics going into the slowdown," the report says.

Read alsoDoing business amid coronavirus: what's happening to grocery prices

As UNIAN reported earlier, Fitch in its outlook released March 10 suggested Ukraine's GDP growth in 2020 at 3.5% from 3.2% in 2019.

At the same time, the agency noted risks of slowdown for emerging markets over uncertainty regarding the influence of Covid-19 coronavirus on global growth and world raw material prices.

Related news

Government aid amid quarantine: what businesses and citizens should expect.

The Verkhovna Rada has passed a bill, submitted by government, on additional social and economic guarantees in connection with the coronavirus epidemic. Businesses assure that the measures being taken are not enough to get the country out of the c...

IMF program will open another intl financing for Ukraine – NBU head.

The National Bank of Ukraine (NBU) hopes for the final adoption by the Verkhovna Rada of a law on banks next week, which will allow receiving both the EFF program from the International Monetary Fund (IMF) and related financing from the World Bank...

National Bank not ready to lift restrictions on Ukraine's forex market.

The NBU has no plans to introduce any additional limits.

No grounds to impose currency restrictions - NBU

The National Bank of Ukraine (NBU) has said there are no grounds to impose currency restrictions despite the not very favorable macroeconomic situation in Ukraine, the central bank's press service has reported on Facebook, following an online ...

2 2

Experts: No prerequisites for grain deficit in Ukraine.

Analysts expect no rise in grain prices this season despite the global coronavirus pandemic.

By continuing to browse World News (UAZMI), you acknowledge that you have read the Terms of Use and agree to the use of cookies