Share of non-performing loans in Ukraine 0.79 p.p. down in March
The share of non-performing loans (NPL) in the total volume of loans in Ukraine in March 2017 fell by 0.79 percentage points (p.p.), to 55.1% as of April 1, 2017, according to the National Bank of Ukraine (NBU).
The total loan portfolio narrowed by 0.38%, to UAH 1.032 trillion.
The central bank said that growth of share of NPL in the first quarter of 2017 compared to figures published earlier is linked to the introduction of new principles for detecting these loans, removal of off-balance sheet liabilities for loans and recognition of the real quality of the loan portfolio by PrivatBank after its nationalization.
The NBU said that a lion's share of NPL belongs to state-owned banks – 69.96%, and 47.57% of them is focused in foreign bank groups and 23.31% in banks with private capital.
The share of troubled assets of the banking system, taking into account off-balance sheet liabilities, is 28.48%. As of April 1, 2017 these assets totaled UAH 2.115 trillion.
The NBU first publishes statistics for NPL meeting the requirements in resolution No. 351 dated June 30, 2016 on assessment of credit risks. 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.
