OREANDA-NEWS. On 27 March 2009 was announced, that the NBU decided to provide UAH 1bn of its refinancing loan to Raiffeisen Bank Aval < BAVL UZ Buy >. The loan is to be fully invested in Ukraine's agricultural sector. Note that BAVL takes around 40% share in the lending of Ukraine's agricultural sector. Meanwhile, according to BAVL, agricultural producers successfully repaid around 80% of their loans to the bank, while around 20% of agricultural loans were prolonged for one more year by BAVL.

Millennium Capital sees the news to be POSITIVE for BAVL, since this will increase BAVL’s loan portfolio by around 2% in the nearest months and will enable to earn around UAH 0,02mn of net interest income. Though the quality of BAVL’s agricultural credit portfolio is lower than the average BAVL’s credit portfolio quality (around 6% share of non-performing loans), Millennium Capital sees no additional risks for BAVL, since the loan was provided by the NBU.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.