The liquidity crisis in the domestic market will be the main obstacle to
lending offices this year. Banks have already inflated the price for this type of loans
and tightened requirements for borrowers. However, this is not the limit: they are going to
do it again in a few months. So do not expect to
modest results for performance in 2008 - an increase "office"
portfolio by 25-30%.

Receive a loan once the classical scheme to transform the apartment
of office space in the current year has been particularly difficult. Today we will
about the features of these loans, "metamorphosis". So, as soon as financiers
problems began to grow with the resources, they began to prioritize, and
also pay more attention to credit evaluation projects. "For banks, this
risky form of lending: it is very likely that
the borrower can not remake the apartment to the office, and as a result of loan repayments
may be questionable. Therefore, although our bank loans and issue of such
species, but usually only reliable borrowers who already have a large
positive experience in this business ", - told the adviser to the chairman
Board "Ukrgasbank" Alexander Okhrimenko. "Some banks do not issue
loans for such operations, "- supplemented by its president LLC" Capital Construction
Technology "Dmitry Poddubny. According to various estimates, this segment remains
only 10-15 banks, which are more or less active in providing loans. Other
or openly refuse to borrowers or use any excuses.
Requirements will suffice for all, in principle, it is well-established phenomenon in the Ukrainian
financial institutions: as the deteriorating market conditions increasingly tough approach
to risk assessment. And in lending their reconstruction of apartments to offices
more than enough. And the majority is of a legal nature. "They are connected
with the bureaucratic process of transfer of premises from residential to nonresidential.
We must not forget that the office is nonresidential. Therefore, the bank will require
documents confirming the legality of the transformation, as for the design
collateral agreements require a notary relevant documents ", - noted
Director of Treasury Bureau of BAT "Khreschatyk" Alexey Kozyrev. "As a rule, such
kind of property transfer from one group to another takes about three years,
and procedures in the risk for the bank's mortgage object may stop
in its determination (no longer living, but not non-residential premises), and the bank
lose the collateral, "- agreed with his colleague independent bank
Expert: Alyabyev. No less important for financial risk in the evaluation
alteration projects to apartments - conditions on the rental market. After all, most
office space for rent today, shall, not sold under the hammer at the first
opportunity. And to calculate the market conditions in advance under the force is not
everything. Therefore, the bank has to think about and market volatility. Even
if the bank today and takes up office credit, then at the same time raises
very stringent requirements. A real blow to entrepreneurs in this year
was to reduce the length of the loan - usually rework apartment
now funded for 2-3 years, while another in 2007, borrowers could
count for 5-7 years. And then the credit agreements were calculated mainly
to deadlines. In this year the bankers have raised the minimum
initial contribution from 15-20 to 30% of the value of real estate, thereby
narrowing the range of potential borrowers. "A credit amount is calculated at the rate of
50% of the market value of the future office, "- said Alexander Okhrimenko. At the same time
with the financial institution inflated prices for the loans at 3-6% per annum. Thus, the cost
hryvna on this type of lending is in the corridor of 22-24%, the dollar
- 15-17%, the euro - 11-12% per annum. Among the additional costs today
also include expenses for insurance and legal nuances. "More
banks may require the borrower to pay for title insurance (risk
rights of ownership change), additional due diligence, as well as
it is possible that there may be additional financial requirement
secured by the surety, "- said Dmitry Poddubny. Sometimes borrowers
can save money on interest rates - when converting flat
office credited programs for small and medium-sized businesses. In this case,
"Discount" can reach 0, 5-1% per annum. True, it mostly solved
banks with foreign capital. But even in this case, the entrepreneur
still require insurance and a pile of papers. The advantage of these programs
- The availability of funding and prompt consideration of loan applications. Kiev
Another scheme is dominant, are still used to finance restructuring
Apartments for offices, initially reduced to an ordinary mortgage. The borrower prepares
unremarkable loan to buy an apartment and after receiving money
Bank of picks already on their savings, global repair. Sometimes financiers
only later find out that they have pledged is already non-residential premises.
It is true that bankers themselves do not recommend playing hide and seek with them, because it is fraught with
serious consequences, with clear financial nuance. "The contract of mortgage
provided that in case of changes concerning the subject of mortgage, the borrower
shall either provide equivalent collateral or repay the lump sum
credit. Banks periodically, on average once a year, check the condition of real
mortgage ", - said Alexander Alyabyev. Financiers do not hesitate to use
the most severe penalties for unruly customers. At the same time, bankers recognize
that in most cases prohibit borrowers to convert into apartments
office space, when it comes to such an application. Perhaps that is why
Recent applications of this kind is recorded very little. "Cases,
when purchased apartment and reissued under a non-residential premises, in
Our bank was registered a little bit. It is not excluded that some customers
did not seek permission for such a renewal, but these are isolated cases "
- Explained the situation to develop specialist lending business customers, "ProCredit
Bank "Victor Kharkovets. Generally lending itself rearrangements apartments to offices
This year began to wane. In January-May 2007, the volume of such financing,
estimated bankers have increased by 45-50%, over the same period of
year - only 15-20% in average in the market. In most cases, this phenomenon
explains the deterioration in the terms the banks are now able to perform
not many. The lion's share of such transactions account for large
city. "In Kiev - about 80% of total loans for the conversion of apartments, Odessa
- 5-8%, Lviv - 3-5%, Kiev - 2-3%, Donetsk, Zaporozhye, and Sumi -
2% ", - said Dmitry Poddubny. Borrower recheck less tragic
The situation with lending offices "from scratch". "The greatest share in the market today
take loans offices ready, "- declared Mr. Poddubny. If financing
these projects used more forgiving standards than the conversion
apartments in non-residential real estate. The minimum initial contribution is
at the level of 20-30%, the value of collateral may fall to 150% of the loan amount,
Although unfamiliar to customers (not previously worked with the bank) may be made
and standard requirements - 200-250%. The maximum credit terms vary
within 5-8 years. "The level of income should be at least two to three
times the size of the loan payment. In addition, the bank may require
presence of solvent guarantor or more liquid collateral. More
one claim - the insurance property "- said Alexey Kozyrev.
"The Bank is considering financing of such facilities, based on their market value
with the necessary investment by the customer for repair, "- supplemented it with
Victor Kharkovets. However, despite the loyal condition at first sight
and the issuance of loans for the purchase of new offices, in April and May were also observed
problems. Banks, which lacked financial resources,
maximum concentrated forces at work with individuals, but because the private
to legal entities and entrepreneurs are often denied loans. "Financial institutions refuse to
lend the so-called "zero-point of the company" to buy their offices. In the future,
possible for a loan to buy the office will be able to get only
company with a stable cash flow, and only if the purchase
office will not affect the deterioration of its financial condition, "- said the situation
Alexander Okhrimenko. In addition, the loan officers at once warn
that will be closer than it has ever been, to look into the borrower's
and thoroughly check its financial condition. It will be assessed comprehensively,
to study not only income but also all of the costs and additional
spending in critical situations and changing market conditions. Credit
collapse, however, despite the already stringent requirements, the bankers admit
Soon another tightening them. And the promise to go right on all counts.
"Expect another raise interest rates on this type of lending
before the end of 2008, which can generally do this kind of unprofitable businesses,
as alteration of flats into offices, "- said Alexander Okhrimenko." Rather,
likely due to increased cost of inputs in the second half of this year's rate
on loans will rise further hryvnia for 2-3% annual rate, currency - at 0, 5-1, 5%
pa "- Alexey Kozyrev added it. Among the surprises for
Ukrainians could be another increase in the minimum amount of the original
payment - by 5-10% depending on the evaluation of the borrower. Also allow financiers
tightening of collateral value. The strict relationship
to borrowers who make a bet on office properties, according to financiers,
can lead to market liquidity shortages. Do away
with the banks can not until November and December, and while on the resource market little
reasons for optimism. Especially after the National Bank is uniquely made it clear
Trust is not going to regular on-demand to lend them funds.
The last issue an order (в„– 236-p) it is up to 10 times per month, limited quantity
possible applications for bank refinancing NBU. Moreover, in accordance
with a new instrument, its total volume should not exceed 40% formed
financial institution reserve requirements for the previous reporting period. "Actions
regulator are clear. Indeed, in recent years banks have been regularly
contact the Central Bank for financing, even if this does not
was no immediate need at the moment. Large and medium-sized financial institution today
profitable to take money for future use: NBU funded at 15% per annum, and these resources
can be resold on the interbank market at 18-20% per annum over small banks, which
can not rely on direct purchase money, the regulator ", - explained the situation
first vice-president of the bank "NRB" Vladislav Kravets. And despite the fact that earlier
The Central Bank has raised hopes in the wards - expanded list of collateral accepted
refinance: to it were added to the shares of banks, which are
in the portfolios of their respective owners. Earlier, the National Bank of actively taking
bail bonds in a domestic public debt. "The most active
refinancing, in my opinion, should be banks, controlling
shares are concentrated in one shareholder. After all, if the financial institution shares
distributed among multiple shareholders, the decision to transfer its shares
in collateral may be very prolonged. Firstly, due to the fact that shareholders should
agreed to take a decision on this issue, and secondly - purely for organizational
reasons, due to the necessity of holding the meeting of the Supervisory Board "
- Said the deputy chairman of the board of one of Kyiv
banks. In addition, the regulator last month set up a market already on the higher
rates on loans. NBU has reviewed all of the basic rate, first raised by 2%
interest rates (up to 12% per annum), and then at 0, 5-1% per annum - the cost of refinancing.
Funding secured by the NBU of government bonds from April 21 is
15%, overnight unsecured - 16%. In the acute
lack of money in the market financiers can not find support in the deposit
segment, through which he managed until recently fed.
Particularly eloquent about the failures of the financiers said the latest statistics
NB: according to him, the total deposit portfolio of the banking system
May has decreased to 0, 8% (2, 6 billion USD). Scarcity of resources has provoked another
rise in price of car loans and mortgages - to 0, 5-1% per annum. So at the beginning
June hryvnia cost loans ranged within 20-22%, USD -
14, 5-16%, EUR - 12, 5-15% per annum. Modestly but effectively Under these conditions
the credit market experts do not most optimistic projections for
prospects for further funding surgeries for offices and apartments lending
new offices in pure form. "Given that banks are now due to lack of
resources have significantly reduced the rate of increase of loan portfolios,
including all types of mortgage lending, a significant increase, as
in previous years (70-100% per year) will not happen. I think that in 2008 the increase
amount to a maximum of 30%, "- said Alexey Kozyrev. experts have no doubt
that, as always, dominate in this segment is Kiev, which accounted for
will account for 75% of all office loans. In second place would be
Odessa from 10% in the third - Lions (6%), followed by Dnepropetrovsk - 2-3%, Donetsk,
Kiev and Sumy - 2%.

Share This Post: