Pedestrians walk past a poster advertising commercial loans on Aug. 6, 2019 in Kyiv. Ukrainian banks have been working to clean up their credit portfolios to reduce the volume of non-performing loans.
This year, state banks have started to chip away at their massive volume of non-performing loans, known as NPLs.
Previously, they risked legal trouble for “mismanaging state funds” if they were to sell NPLs at a discount. But new guidelines approved by the Cabinet of Ministers in April finally gave state banks a pathway toward healthier credit portfolios.