Page 53 - UKRRptFeb21

8.1.2​ NPLs
Aiming to cut nonperforming loans in half by 2023, Ukraine is speaking with the IMF about creating a special financial court to settle bank loan disputes,​ Central Bank Governor Shevchenko told Reuters in January. The portion of bank loans judged non-performing is 42%. “That is why we are now discussing the option of creating a specialized court or chamber of the court in Ukraine, which will consider issues between creditors and borrowers, as well as between investors and recipients of investments,” he said.
The share of non-performing loans (NPL) in Ukrainian banks as of the end of 2020 amounted to 42%, ​which is 6 percentage points (p.p.) lower than the same indicator a year earlier (48%), First Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova has said.
"Since the beginning of 2020, we have minus 6 percentage points from 48% to 42%. There are UAH450bn of non-performing loans left. I have no doubt that in 2021 this figure will be lower," she wrote on Facebook.
Rozhkova added that banks plan to reduce NPL volumes by more than UAH400bn by the end of 2022.
According to her, it is necessary to create a civilized infrastructure to work with problem debts, in particular, to create specialized companies that will work efficiently with problem loans in the corporate sector and deal with complicated restructuring, search for investors and management of collateral.
NPLs % of loan book
Dec 18
Dec 19
Dec 20
ratio of non-performing loans, %
53.73
48.69
42.03
incl. banks:
with state participation, of which:
68.15
63.1
58.07
PrivatBank
83.24
78.43
74.42
state banks ex-PrivatBank
55.41
48.86
44.09
Foreign owned
38.68
34.14
29.05
Privately owned
24.08
20.16
16.28
Insolvent
76.27
0
0
Source: NBU
53​ UKRAINE Country Report​ February 2021 ​ ​www.intellinews.com