The share of non-performing business loans increased to 44% amid the war - NBU
Kyiv • UNN
Non-Performing Loans to Businesses in Ukraine increased by 44% to UAH 359 billion amid the war
The share of non-performing business loans has risen to 44% since the start of the full-scale war, to UAH 359 billion, the National Bank of Ukraine reported on Wednesday, UNN reports.
Details
"The war interrupted the downward trend in NPLs. As a result, the share of non-performing business loans in the banking sector has increased to 44% since the beginning of the full-scale invasion in early October 2023, and their volume reached UAH 359 billion," the NBU said.
Reportedly, about a third of "war" NPLs (loans that became non-performing during a full-scale war) arose from damage, destruction, or occupation of production facilities. The lion's share, or 60%, is due to financial difficulties of clients not directly caused by the occupation or destruction. These clients have the highest chances of returning to the loan servicing schedule when the economy recovers.
Banks are pessimistic about the prospects for restoring the solvency of debtors whose main assets have been lost or are located in the occupied territories or in the war zone. Such loans are reserved by more than 77%.
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