Ukraine sets a world record for problem loans, overtaking the poorest countries
In terms of the level of non-performing loans, Ukraine last year became the anti-record holder in Europe, and this year it came out on top in the world.
The Kiev magazine “Focus” writes about this in an article under the eloquent title “In Unpayable Debt”.
“Last year, in terms of the level of non-performing loans, Ukraine became the anti-record holder in Europe. At the beginning of 2017, the volume of problem loans amounted to UAH 445 billion, approximately 45% of the entire portfolio. However, in mid-2018, this figure, instead of going down, went up. In the total portfolio of banks, the share of such loans is 56,2% (UAH 626 billion). And this is already a world record. In this humiliating category, Ukraine has “worthy” neighbors,” the publication notes.
Referring to data from the executive director of the National Association of Banks of Ukraine Elena Korobkova, the magazine indicates that, for example, in Afghanistan in 2010 the share of problem loans was 50%, in Nigeria in 2016 - 38%, in Equatorial Guinea - 28%.
The bulk of the debts hang on Ukrainian state banks, Focus emphasizes, adding that “of the entire problematic portfolio of Oschadbank, 94% of debtors are large businesses.”
In turn, senior analyst at the investment company Dragon Capital Anastasia Tuyukova draws attention to the fact that in the loan portfolio of the five largest business groups in Ukraine, 93% of the loans are problematic.
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