Operational plans of state-owned banks foresee cut of NPL in system to 32% by 2023 – NBU

The operational three-year plans of state-owned banks to reduce non-performing loans (NPL), approved by the Financial Stability Council on June 30, provide for a reduction in NPL in the banking system from 51% to 32%, and in state-owned banks from 66% to 31% by 2023, the press service of the National Bank of Ukraine (NBU) told Interfax-Ukraine on Tuesday.

According to the report, in absolute terms, the NPL level is expected to decrease by UAH 305 billion in three years.

State-owned banks plan to achieve such a level of NPL by writing off troubled assets from their balance sheets, including loans for which a reserve of 100% has already been formed.

"According to the NBU regulations, cancellation does not mean debt forgiveness. Banks will continue to defend their interests in collecting debts from owners," the regulator said.

Source: www.en.interfax.com.ua