Ukraine's hryvnia-denominated business lending grew at the fastest pace in 15 years in May 2026, according to data from the National Bank of Ukraine (NBU). The NBU reported that corporate loans in local currency increased by 12.5% year-on-year, driven by demand from the agricultural and manufacturing sectors.
However, the central bank also warned about the growing debt from government subsidy programs, which could pose risks to financial stability. The NBU noted that the volume of overdue subsidy debt had risen to 18.3 billion hryvnias as of June 1, 2026, up from 15.1 billion hryvnias a year earlier.
The NBU's Financial Stability Report, published on June 30, 2026, highlighted that while lending growth supports economic recovery, the accumulation of subsidy debt requires careful monitoring. The central bank urged the government to improve the targeting of subsidies to reduce fiscal pressure.
