KIEV, June 24 – The stricter requirements on the formation of reserves for consumer credit risk by banks proposed by the National Bank of Ukraine could lead to a rise in the cost of consumer credits, according to experts polled by Interfax-Ukraine.

"This NBU draft resolution [on the procedure for the formation and use of reserves for reimbursing possible losses on the credit transactions of banks] is a logical consequence of the situation on the Ukrainian financial markets. If the resolution comes into effect, the banks would have to fundamentally review their activities in crediting, decide on tougher requirements on borrowers, and considerably increase interest rates on consumer credits. These processes could affect the volume of crediting, as the share of reliable borrowers who have funds for the down payment is less than the number of borrowers who would like to receive credits without a down payment," deputy board chairperson of the retail business department at Zaporizhia-based Industrialbank, Marharyta Ladyzhenska, said.