From 2022 to 2024, Ukrainian enterprises significantly reduced their net debt, indicating an improvement in financial stability. According to data provided by Concorde Capital’s top manager Oleksandr Parashchiy, Ukrainian companies have decreased their debts to banks by $21 billion, which is three times greater than the volume of direct foreign investments during the same period.
This is reported by Finway
During this time, business loans decreased by $2-2.8 billion, while deposits increased by $16-17.7 billion. Investments in domestic government bonds (OVDP) also rose by approximately $2.4 billion. This deleveraging process can be seen as evidence of the untapped investment potential of Ukrainian businesses or as a serious challenge for the country’s economy.
Possible Scenarios for Business Fund Utilization
Experts believe there are several possible scenarios for how Ukrainian businesses might use the accumulated funds after the war ends. One scenario anticipates a potential outflow of currency from Ukraine exceeding $15 billion if the National Bank of Ukraine (NBU) lifts restrictions on capital withdrawal. In this case, even private foreign investments may not compensate for these losses, and new investments are unlikely.
“As a result, we will see significant outflows in the balance of payments and the banking system, a painful devaluation of the hryvnia, and degradation of the economy. Our businesses will actively invest money abroad,” noted Oleksandr Parashchiy.
Investment Prospects in Ukraine
Another scenario suggests that, thanks to the accumulated funds of Ukrainian businesses and their willingness to lend in Ukraine, investments of $40 billion could be secured. This could be an important step in the recovery and development of the Ukrainian economy.