Tuesday, March 14, 2023
Due to the war, in 2022 the share of NPLs (loans past due within 90 days) in the Ukrainian banking system increased from 34% to 39%, Opendatabot informs. To resolve an overdue loan situation, banks has two options: sue the debtor in court or sell this debt to external collectors. Last year, Ukrainian banks acted as parties in 56,670 court cases, 37% less than before the start of the war. A dozen banks most often involved in lawsuits reduced their activity in 2022. The state-owned PrivatBank and Oschadbank filed half as many cases as in 2021. The most significant drop, by 200%, in lawsuit procedures was observed at A-Bank. Analysts believe that given the low activity in courts, banks are preparing to sell loan portfolios to collectors, leading to increased losses and corruption risks.