KYIV (Reuters – Ukraine’s banks suffered a loss of $730m in their first quarter, as lenders were forced to convert more than $730 million in foreign currency into reserves in order to offset future losses due to war.

According to the statement, 160 million Hryvnias were lost ($5.42 Million) in January-March. This compares with 10.9 billion Hryvnias profit in the same time last year.

It stated that banks will remain in decline due to falling business activity, as well as falling demand for banking services and loans.

The report stated that 44 of 69 active lenders had been profitable, while 25 other lenders suffered losses totaling 6 billion hryvnias.

According to forecasts by the central bank, Russia’s current war against Ukraine may cause Ukraine’s economy to shrink by at least one-third in 2022. This could lead to inflation exceeding 20%.

($1 = 29.5000 hryvnias)