PrivatBank offers special terms to borrowers as part of its large-scale debt restructuring

Ukraine's largest PrivatBank on November 26 will launch a large-scale debt restructuring project under which almost a million borrowers will be able to repay their outstanding loans on special terms.

"We believe that by offering this unprecedented project to tackle the problem of credit debts, PrivatBank not only makes significant efforts to improve the entire banking system's performance in terms of non-performing loans, but also gives a significant social impetus, restarting a huge consumer lending system," the bank's press service told UNIAN on November 5, referring to Deputy Governor of PrivatBank's Board Halyna Pakhachuk.

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The bank expects to restructure UAH 87.7 billion (US$3.1 billion) in debts under 961,600 contracts remaining unserved for more than 90 days, it said.

The bank will offer 47 debt restructuring options to borrowers who had concluded loan agreements before December 16, 2016, and have not been able to repay their debts.

As reported, the bank's bad loan portfolio is estimated at UAH 80.7 billion ($2.9 billion) in debt as of December 16, 2016, under 516,000 loan agreements.

According to the bank, the first stage of the restructuring is scheduled for November 26, 2018, to November 26, 2019. This refers to almost 300,000 contracts worth UAH 48.5 billion ($1.7 billion) concluded with customers, representing retail, small- and medium-sized businesses, as well as consumer lending businesses.

The press service added that thanks to the project, the bank would address a significant part of bad debts, which enables it to reduce the formed reserves and increase profitability.

UNIAN memo. Dnipro-based PrivatBank has been operating in Ukraine since 1992. It is Ukraine's No. 1 bank in terms of assets.

On December 18, 2016, Ukraine's Cabinet of Ministers decided to nationalize PrivatBank, guided by the recommendations of the National Security and Defense Council of Ukraine based on the National Bank's proposal.