The Amount of nonperforming loans (NPL) in the financial system of Ukraine decreased from 41% at the beginning of 2021 to 33% as of October 1.
This was reported by Sergiy Nikolaychuk, the Deputy Governor of the NBU, during the VIII Annual International Conference "Ukraine Trade: Finance 2021".
"The level of NPL, that is a marker of the banking system state, is rapidly declining—from 41% at the beginning of the year to 33% as of October 1. The coverage rate of non-performing loans by reserves at the end of September increased to the all-time highest 99%," the NBU press service reports.
According to Nikolaychuk, the banking system shows profitability and record profitability in 2021. The banking system figures show record revenues of 51.4 billion UAH in nine months of 2021 and a high level of liquidity—over 200 billion UAH.
Non-performing loan (NPL) is a loan in which a borrower does not fulfill the terms of the original loan agreement. NPL includes loans the interest and principal amount payments for are overdue by 90 days or more.