The global credit crunch has largely spared Ukraine’s fast-growing banks, but some smaller institutions have run into difficulties refinancing their debts and borrowing costs have risen modestly for bank clients.

The global squeeze could reduce the valuations of local banks from record highs and possibly create buying opportunities for foreign banks keen to invest in Ukraine. As the effects work through the economy they could also help slow credit expansion and assist in preventing economic overheating – though there is little sign yet of a slowdown.