State-owned Banks Reduced their Non-Performing Loans Portfolio by UAH 6.1 billion

State-owned banks continue to reduce their portfolio of non-performing loans. In the first half of this year, the NPLs decreased by UAH 6.1 billion to UAH 391 billion. Their share in the state-owned banks' loan portfolio decreased to 63.1%. In the sectoral context, the largest share of non-performing loans of public sector banks is traditionally concentrated in wholesale and retail trade, production of chemicals and chemical products, food production, and metallurgical production.

In the first half of 2020, public sector banks restructured NPLs by UAH 14 billion, reduced overdue debts by UAH 2.6 billion, and wrote off UAH 26 billion in non-performing loans from reserves.

“To strengthen the possibility of effective settlement of the portfolio of non-performing loans, the resolutions of the Cabinet of Ministers and the National Bank of Ukraine were adopted. Also, in July this year, the Financial Stability Council approved operational plans to reduce the NPLs of public sector banks over the next three years, which provide for a significant reduction of the share of non-performing loans in the loan portfolios of public sector banks”, - said Dmytro Oliynyk, Director of the Financial Policy Department of the Ministry of Finance.

To reduce the share of non-performing loans, public sector banks worked to recover debts. As of July 1, 2020, there were more than 57 000 claims of banks in the courts for a total amount of UAH 38 billion. In the first half of the year, 29 000 new lawsuits were filed in court worth about UAH 10 billion. In 54 000 cases, UAH 8 billion were decided to be collected in favor of state-owned banks. 164 000 enforcement proceedings were opened for a total of UAH 72 billion.