One possible solution to the problem of the share of non-performing loans (NPL) is to create a bank of “bad assets” (bad bank) to settle the current and future problem debt accumulated during a full-scale war. This was announced by the Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev. He draws attention to the fact that despite the positive trends, the NPL problem remains a significant obstacle to the recovery of lending.
Thus, according to the NBU, as of July 1, 2024, the share of non-performing loans (NPL) in the banking sector of Ukraine was 34.6%, which is 2.8 percentage points less compared to the beginning of the year. The total volume of NPLs for the first half of 2024 decreased by UAH 4.2 billion, reaching UAH 418.2 billion.
“During the war, the portfolio of “bad loans” increased by 37% (+ UAH 113.1 billion). 90% of this increase is made up of business loans, which is primarily a consequence of the deterioration of the borrowers’ financial condition, as well as the damage and loss of their assets due to the war. These non-performing loans, the lion’s share of which are reserved, continue to put negative pressure on banks’ balance sheets and restrain lending,” the People’s Deputy believes.
In his opinion, one of the possible options for solving the problem is the creation of a bank of “bad assets” (bad bank) to settle the current and future problem debts accumulated during a full-scale war.
Hetmantsev emphasizes that, despite all the caveats, over the past 30 years, the world has accumulated significant positive experience in the functioning of such institutions (such as the response to banking crises in the early 1990s, the Asian financial crisis in the late 1990s, and the global financial crisis of 2008).
The People’s Deputy is convinced that such a specialized institution can be created on the basis of one of the small banks that recently became state property due to sanctions (meaning the Motor Bank JSC confiscated from the former president of JSC “Motor Sich” Vyacheslav Boguslaev – ed. .), possibly with the additional participation of donors.
“Its main mission is to take on its balance sheet at a certain discount all or most of the current and future military NPLs with the aim of further passive or active management of such stressed assets, including ensuring their sale, securitization, restoration of their value, seeking compensation for destroyed assets due to centralized lawsuits against Russia, etc.,” Hetmantsev emphasized.
He added that this would allow commercial banks to concentrate on building a healthy loan portfolio, which, in turn, would speed up the recovery of lending.
Another state bank will appear in Ukraine
On June 25, the Appellate Chamber of the Higher Anti-Corruption Court confirmed the decision of the first instance on confiscation of the assets of the ex-president of JSC “Motor Sich” Vyacheslav Boguslaev, in particular JSC “Motor-Bank”, into the state income. As reported by the Deputy Minister of Justice Inna Bohatyh, there will now be one more state-owned bank in Ukraine, because the state will receive 100% of JSC “Motor-Bank”. Please note that currently in Ukraine, PrivatBank, Oschadbank, Ukreximbank, Ukrgazbank, Sens Bank and PIN Bank are state-owned.
delo.ua
