Ukrainians start to leave more money on long-term deposits

Kommersant Ukraine writes about this with reference to the National Bank statistics Friday.

“The bankers relate boosting of the long-term deposits portfolio with the citizens' wish to fix high interests for a long period. However, a trend of short-term deposits popularity is hard to be broken, the bankers complain. Long-term deposits occupy only 3% of the portfolio,” the publication notes.

According to the NBU, long-term hryvnia deposits have already reached the pre-crisis volume - in September 2008 growth made up UAH 934 million. Following that, absence of trust to the banking system and fears of devaluation made Ukrainians to keep their funds in banks mainly on short term or demand deposits.

“Last year, the average deposit was placed for the term of two and a half - three months, and now already for six months,” Deputy Chairman of the National Bank Borys Prykhodko says.

However, the bankers do not see prerequisites as yet for the share of long-term deposits has substantially grown.

“The previous years' experience shows that at the end of autumn short-term deposits up to three months in the national currency will be popular, which are related to the banks' New Year actions and the wish of households to get higher interest rates for a shorter period,” head of the Ukreximbank department for organization and support of retail business Viktoria Hretska believes.