By KYIV. Nov 28 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) is aware of the problem of the growth in the number of NPLs during the war and, as part of its post-war solution, proposes to create an infrastructure for the secondary market for such debts and, together with international financial institutions, work out the idea of funds to work with debtor companies, NBU first deputy governor Kateryna Rozhkova said.
"The main idea is to create some funds, no matter what they are called, which will make it possible to work together with banks and their debtors, evaluate their business. And if this business is viable, these funds will allow us to raise capital to restore the business, and automatically this business will continue to service loans and help banks restore capital," she said at the Ukrainian Investment Roadshow conference held last week in London.
Rozhkova added that it is not only about attracting working, but also fixed capital.
According to her, as soon as the situation is relatively stabilized, the National Bank will begin to analyze the quality of banks’ assets and assess the viability of the banking sector and, using these standard tools to understand the overall numbers and losses, will prepare a capital recovery roadmap.
So far, as the NBU first deputy governor pointed out, the regulator assumes that banks will lose at least 20% of the working loan portfolio, and the war is the main reason for the growth of NPLs, since before it the quality of the assets of the banking system was quite good.
