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In 2019 State Banks of Ukraine have Significantly Reduced the Amount of NPLs

The Ministry of Finance of Ukraine reports that in 2019 Ukraine continued the trend of non-performing loans (NPL) reduction.

In the year 2019 the amount of NPL in the banking system of Ukraine, in general, has decreased by UAH 100 bn (approx. USD 4 bln). The percentage of NPL is still quite large. As of 1st of January 2020 about UAH 531 bn (48% of all loans) were non-performing.

As for the state banks, during 2019 the amount of NPL has shrunk by UAH 40 bn, while their share has fallen to 63,5% (from 67,5%).

These results were achieved thanks to the increase in a number of performing loans, including consumer loans, as well as debt repayment and restructuring.

In 2019 state banks

  • decreased overdue debts by UAH 6,4 bn;
  • restructured in total UAH 24 bn of NPLs;
  • wrote-off debt by UAH 5 bn at the cost of reserves.

Furthermore, the banks are active in legal collection. As of 1st of January 2020 there were more than 71 thousand lawsuits worth UAH 43,5 bn in the courts. In 2019, more than 99 thousand new lawsuits worth UAH 26 billion were filed.