The volume of non-performing loans (NPL) in state-owned banks fell by UAH 22 billion in January-June 2019, and their share of the loan portfolio decreased to 65%, according to a second report of the Finance Ministry on the state of work with NPL published within a regular and detailed report on operations of state-owned banks.
“Compared to January 1, 2019, the volume of NPLs in state-owned banks decreased by UAH 22 billion, to UAH 415 billion, and their share of the loan portfolio decreased by 2.5 percentage points, to 65%,” the ministry said in the report.
According to the results of the first half of the year, public sector banks reduced overdue debts by UAH 3.5 billion and carried out restructuring for UAH 10.6 billion.
Banks of the public sector restructured a total of about UAH 11 billion, of which 47% (UAH 5 billion) under the law on financial restructuring. In the first half of the year, Oschadbank successfully completed the financial restructuring procedures with TMM Firm LLC, Imperovo Foods LLC, PJSC Avangard agroholding, and PJSC Rise-Maksymko. Two cases of financial restructuring for companies of the WOG group have been opened. In addition, Ukreximbank opened its first financial restructuring case with Office Construction Agency LLC, which has become one of the largest in terms of debt to be restructured.
The share of the NPL of the banking system as of July 1, 2019 was 51%, or UAH 581 billion.