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OECD: Dollarization of loan market causes banking sector risks
Journal Staff Report

KIEV, Sept. 5 – The current exchange-rate regime, combined with more attractive interest rates on foreign currency loans, constitutes a particularly powerful incentive to borrow in dollars, according to experts of the Organization of Economic Cooperation and Development.

"The fast dollarization of crediting indirectly causes currency risks for the banking sector, as many borrowers have no income in foreign currency and funds for hedging," reads the OECD Economic Assessment of Ukraine introduced on Tuesday in Kiev.




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