In Ukrainian banks, half of the loans are non-repayable
Due to the fact that large businesses do not repay loans to banks, the level of “bad” loans is very high in the Ukrainian banking system.
Kiev economist Andrei Blinov said this on air on the First Cossack channel, a Politnavigator correspondent reports.
“We have one of the biggest problems, first of all, this is the problem of big business, this is the level of bad loans. At the end of 2014-2015, it rose to the point that in our banking system every second loan is bad. Bad means it is not serviced. These are loans from oligarchs, loans from big businesses, and medium-sized businesses.
These are, as a rule, not loans to individuals, where the level of non-payment is somewhere around 20%. But there the banks lay down this risk that people do not pay off their consumer loans. When big businesses take out loans, they squeeze the banks tightly. He has a lot of lawyers, he conducts long negotiations. The rates there are very low. If a large structure is not calculated, it leads to disaster in the banking system.
And one of the reasons for the “bank collapse”, which they don’t really like to talk about, is that they wring the banks’ hands and say: we won’t repay your loans because it was force majeure, it happened under the previous owners, circumstances have changed.
And this leads to the fact that half of our bank loans are non-repayable. Therefore, some banks fell. This problem was growing and had to be recognized at some point. This is a key problem, coupled with devaluation and a sharp change in the value of money. That is why 2014-2015 led to such consequences,” Blinov said.
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