Director of the Financial Stability Department at the National Bank of Ukraine (NBU) Vitaliy Vavryshchuk says the share of non-performing loans in Ukraine’s banking system is a record high in the entire history of international observations.
“We have established a somewhat unpleasant and very costly record for the country’s economy and banking sector: the highest share of non-performing loans has been recorded in Ukraine in the entire history of world observations,” Vavryshchuk said.
He said the problem had already been addressed, as the banks had already formed the necessary reserves for those debts, having reduced pressure on capital and profitability.
“But we need to do something with the bad debts. They need to be more actively handled by clearing up, writing off or restructuring,” the NBU official added.
According to the regulator’s report on financial sustainability presented at the briefing, the share of non-performing loans is gradually decreasing after reaching its historic high of 58% in July. (UNIAN/Business World Magazine)