According to the central bank, state-owned banks have begun to implement plans to clean the balance sheets from the legacy of previous years - non-performing loans.
In September 2020, state-owned Ukreximbank wrote off UAH 16.6 billion in non-performing loans, for which 100% of reserves had previously been formed.
As a result, the share of NPLs in state-owned banks (excluding PrivatBank) decreased from 47.6% on September 1 to 43.5% on October 1.
At the same time, the share of NPLs in the banking sector declined from 48% to 45.6% as of October 1.
As reported, in late June 2020, the Financial Stability Council approved the plans developed by state-owned banks, which provide for a reduction of UAH 305 billion in the NPL portfolio within the next three years.
The approval of action plans of state-owned banks to reduce NPLs means the implementation of one of the structural beacons under Ukraine's cooperation program with the IMF.
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