Non-performing loans in Ukraine account for over 40%

The National Bank of Ukraine (NBU) estimates the level of non-performing loans (NPLs) in Ukraine at more than 40% as of today.
”It is difficult to boost lending with such a burden when there is no adequate protection of creditors` rights,” NBU Deputy Governor Kateryna Rozhkova said during a round table talk in Kyiv.
If compared to other economies, such a share of NPLs is typical of countries with a slumping economy.
As UNIAN reported earlier, Ukraine`s banking sector has an excess level of liquidity. As of January 1, 2016, the amount of banks` investment in deposit certificates issued by the NBU stood at UAH 89.265 billion.
Bankers do not incline to the immediate resumption of lending, claiming creditors` rights are safeguarded poorly in the country. They also point to the large share of bad loans and borrowers` low ability to repay loans.
The hryvnia loan balance at Ukrainian banks in 2015 shrank by 19.1%, to UAH 439.3 billion, while the balance of loans in foreign currency decreased by 20.3%, to $23.9 billion.

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