Oschadbank (Kyiv) is preparing to start selling non-performing loans (NPL) at open auctions starting in the fall of 2020, in particular, the bank is currently identifying and agreeing on the relevant assets for sale, the bank’s press service has told Interfax-Ukraine.
The press service clarified mechanisms for managing problem assets have become more accessible thanks to the decree of the National Bank of Ukraine (NBU) dated April 13, 2020 (No. 49) and the resolution of the Cabinet of Ministers dated April 15, 2020 (No. 281).
It is clarified that these documents determine that the relevant auctions should be held according to the Dutch model (to lower the price) and include the stages of submitting closed price offers and a price offer subject to a number of conditions.
The press service added that such conditions include a ban on the purchase of a lot by the debtor or a person related to him, setting the starting price at the level of the gross book value of the financial asset, and the minimum at a level not less than the minimum economic benefit.
It is noted that the changes adopted by the NBU and the Cabinet of Ministers also determine the procedure for writing off bad assets by state banks. In particular, in accordance with them, Oschadbank in the first half of 2020 wrote off non-performing assets by UAH 22 billion, which led to a decrease in the share of NPL in the total credit portfolio from 55% at the beginning of the year to 48%.
Main trade partners of Ukraine in % from total volume (import from other countries to Ukraine) in Jan-May
The single counterparty exposure limit (H7), the value of which should be no more than 25%, was violated by Ukreximbank (33.57%), Industrialbank (74ю66%), Prominvestbank (77.25%), Oschadbank (28.37%), Misto Bank (38.13%) as of August 1, 2020, according to a posting on the website of the National Bank of Ukraine (NBU).
The central bank said that the related party transactions exposure limit (H9, the requirement is no more than 25%) was violated by Megabank (51.94%), First Investment Bank (59.23%), Unex Bank (30.55%), Motor Bank (49.85%).
The limit on bank total long open FX position (L13-1), the value of which should be no more than 10%, was violated by Prominvestbank (130.6%), Oschadbank (128.8%), PrivatBank (89.12%) and Industrialbank (16.37%).
Prominvestbank (132.89%) violated the limit on bank total short open FX position (L13-2, the value should be no more than 10%).
Arkada Bank (60.23%) violated the limit in bank short open position on all currencies (LCRвв, the value should be no less than 100%).
Since the beginning of the new 2020/2021 marketing year (MY, July-June) and as of August 19, 2020, Ukraine exported 5.1 million tonnes of grain and legumes, which is 1.26 million tonnes less (due to corn) than on this date in the past MY.
According to the information and analytical portal of the Ukrainian agro-industrial complex, 3.03 million tonnes of wheat, 1.56 million tonnes of barley and 502,000 tonnes of corn (1.18 million tonnes less) was exported to date.
As of August 19 of this year, 28,400 tonnes of flour was also exported.
As reported, in the 2019/2020 MY Ukraine exported a record 57.2 million tonnes of grain, legumes and flour, which is 13.5% more than in the previous MY.
The Infrastructure Ministry of Ukraine says that conditions must be created for active use of e-vehicles in Ukraine and necessary infrastructure must be developed.
“As of the end of July this year, around 23,000 e-vehicles and a bit more hybrid vehicles, which is around 46,000 vehicles, were registered in Ukraine,” the ministry’s press service quoted Infrastructure Minister Vladyslav Krykliy as saying on August 18.
According to the minister, the key to an increase in the number of e-vehicles in Ukraine is making their cost lower and infrastructure development.
“The National Transport Strategy for 2030 provides for the promotion of use of e-vehicles. We are planning to update some of its clauses soon, in particular the ones on the use of public electric transport. However, our key task is to create conditions for the production of e-vehicles in Ukraine,” Krykliy said.
He also said that the ministry supports the extension of VAT exemption for e-vehicle imports to Ukraine. It has also suggested and is actively participating the elaboration of the key amendments to the state building regulations regarding the construction of charging stations on roads.
“We want to change the state building regulations and ensure construction of charging stations on all public roads, and not only national ones,” the minister said.
In addition, the Infrastructure Ministry plans to ensure gradual replacement of public transport with electric vehicles, in particular via raising loans on favorable terms.
According to Krykliy, the government and the Verkhovna Rada should create conditions for active use of e-vehicles in Ukraine and development of necessary infrastructure.
The ministry also recalled that, according to the Interior Ministry of Ukraine, 3,385 e-vehicles were registered in Ukraine in H1, 2020, which is 16% more than over the same period in 2019.
National bank of Ukraine’s official rates as of 20/08/20
Source: National Bank of Ukraine
