It is impossible to make credit rates lower via emitted funds, Stelmakh says

15:12

It is impossible to make credits cheaper by emitting unsecured money, which will lead to the devaluation of the currency, speed up inflation and cause further growth of credit prices, National Bank of Ukraine (NBU) Governor Volodymyr Stelmakh has said in an interview with Dzerkalo Tyzhnia newspaper.

According to Stelmakh, it is possible to provide low credit rates amid inflation only by paying to creditors the difference between the rate they agree to lend money and the rate that would satisfy a borrower.

"There are such mechanisms and they are successfully used, in particular, in Ukraine. I mean the budget compensation of a part of credit costs for various categories of borrowers. The thing is, the compensation funds foreseen in the budget are not as large as they should to be. But in this case, the question is not one for the central bank to answer," he said.

01.07.2009