Page 48 - UKRRptJul21

contributed, but it is the privately owned banks that have made the most progress, having brought their NPLs down just 12.4% as of June from 14.5% at the start of this year and 19.5% in June 2020.
The foreign owned banks have also made progress, bring their NPLs down to 25% in June from 34.3% a year earlier. And even the state-owned banks (excluding PrivatBank) have done well, although bad debt still accounts for 40% of their loan book, down from 46.6% a year earlier.
The gorilla in the room remains PrivatBank where NPLs still make up 71.7% of its loan book, due to what the new state appointed management following its nationalization in 2016 call the “fraud loans” that the previous bank’s management made to related parties.
The Deposit Guarantee Fund has completely liquidated 51 of the 97 banks declared insolvent during the 2014-2016 banking crisis, Svitlana Rekrut, Managing Director of the Fund, tells the Kyiv Post. However, assets frozen for a decade have depreciated sharply, presenting obstacles for the Fund to repay its $4.3 billion debt to the state. The Fund’s goal is to triple by 2023 the size of insured deposits, to $21,800. The EU standard is $122,000.
The Deposit Guarantee Fund raised a record $37 million last month in sales of liquidated banks, the Fund reports. Sales included: the 12-story Victoria hotel in Odesa, for $5.1 million; and a central Kyiv office space, for $3.1 million. Reflecting pricing problems and legal clouds over properties, 92% of the 581 auctions did not take place for a lack of bidders.
NPLs % of loan book
Jun 19
Jun 20
Jun 21
ratio of non-performing loans, %
51.3
49.62
37.85
incl. banks:
with state participation, of which:
66.03
64.79
54.9
PrivatBank
81.63
79.27
71.77
state banks ex-PrivatBank
52.13
51.05
40.6
Foreign owned
37.4
34.25
25.07
Privately owned
21.68
19.57
12.43
Insolvent
0
0
0
Source: NBU
48 UKRAINE Country Report July 2021 www.intellinews.com