The Cabinet of Ministers of Ukraine has provided government guarantees for loans in the amount of UAH 1.055 billion taken by state-owned enterprises Lvivvuhillia, Pervomaiskvuhillia, Selidovvuhillia, Toretskvuhillia and Surhai Mine to implement investment projects.
The resolution was approved at a government meeting on Wednesday.
According to the documents, Pervomaiskvuhillia attracts UAH 276.21 million to prepare and launch a new longwall, Selidovvuhillia – UAH 278.12 million for refitting of 11th longwall of one of its coalmines.
Surhai Mine will take a loan of UAH 138.84 million for own re-equipment and Toretskvuhillia will take UAH 21.15 million for refitting of one longwall of one of its coalmines.
Lvivvuhillia will attract UAH 112.2 million for re-equipment of Vidrodzhennia Coalmine and UAH 228.11 million for Stepova coalmine.
The government guarantee covers 80% of liabilities, including the principal of the loan and credit rates. The fee for the government guarantee is 0.001% per annum of the unpaid sum of the loan.
The share of non-performing loans (NPL) in the total volume of loans in Ukraine in March 2018 grew by 0.18 percentage points (p.p.), to 56.38% as of April 1, 2018, according to the National Bank of Ukraine (NBU). The total loan portfolio expanded by 0.4%, to UAH 1.117 trillion.
The ratio of NPL and the credit portfolio of state-owned banks grew by 0.15 p.p. in a month, to 72.29%, that of foreign bank groups fell by 0.65 p.p, to 45.27%, that of banks with private capital fell by 0.04 p.p, to 24.8% and insolvent banks grew by 0.22 p.p, to 58.44%.
Since the start of the year, the share of NPL has grown by 1.84% and the portfolio has expanded by 2.42%.
The share of troubled assets of the banking system, taking into account off-balance sheet liabilities, was 29.67% (0.22 p.p. up). As of April 1, 2018 these assets totaled UAH 2.214 trillion (0.04% down in a month and 0.7% up since early 2018).
The NBU first published statistics for NPL meeting the requirements in resolution No. 351 dated June 30, 2016 on assessment of credit risks in March 2017. The resolution says that NPL notion as close as possible to the common notion in global practice “non-performing exposures/loans” (NPE/NPL).
According to the new rules, NPL are loans overdue for over 90 days (30 for banks) or it is unlikely that the debt without seizing collateral can be collected.
