CORPORATE SECTOR LENDING IN UKRAINE: CURRENT TRENDS, STATE SUPPORT MECHANISMS, AND THE ROLE OF BANKS

The article examines the current state and key development trends of corporate lending in Ukraine under martial law. Based on statistical data from the National Bank of Ukraine, the study analyzes the dynamics of the volume and structure of lending to enterprises from 2022 to 2026, as well as the sectoral distribution of loans to non-financial corporations. Specifically, it was found that after a contraction in 2024, the volume of corporate lending gradually recovered, reaching UAH 869,727 million by the beginning of 2026, while the share of corporate loans in the total lending volume declined to 71.27%. Particular attention is paid to assessing the quality of the corporate loan portfolio based on the non-performing loan (NPL) ratio, the dynamics of this indicator reveal a significant deterioration in loan quality during the initial years of the full-scale war, followed by subsequent improvement, with the NPL share dropping from a peak of 44.12% in early 2024 to 16.99% in early 2026. The study analyzes the significance of state instruments for supporting corporate lending, including interest rate subsidies, state guarantees, and concessional lending. Special focus is placed on the “Affordable Loans 5-7-9%” program, its role in supporting business activity, and the composition of the loan portfolio by economic sector. As of September 14, 2026, a total of 162,006 loan agreements worth UAH 581,576.4 million had been concluded under the program. Agriculture, industry, and trade accounted for the largest shares of lending within the program. The study identifies key challenges in the development of corporate lending, including high levels of war-related risks, declining corporate solvency, a shortage of long-term financial resources, high borrowing costs, underdeveloped war-risk and political-risk insurance, reliance on state support programs, and the need for further resolution of non-performing loan (NPL). The study substantiates measures to improve the corporate lending system, proposing the development of war-risk insurance, enhanced efficiency of state support, expanded long-term financing for investment and innovation projects, improved mechanisms for resolving distressed debt, and greater transparency in corporate financial reporting.