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As of July 1, over 70,000 relevant lawsuits worth over UAH 116 billion (US$4.8 billion) have been filed with courts by state-run banks to recover debt on loans.
Ukraine's Finance Minister says state-owned banks in the first half of 2019 reduced non-performing loans by UAH 22 billion (US$909.1 million).
In particular, the state-owned banks, including financial institutions, reduced debts by UAH 3.5 billion (US$144.6 million), restructured them by UAH 10.6 billion (US$438 million), and covered debts with reserves at UAH 2.9 billion (US$119.8 million), according to the ministry's non-performing loans status report.
In the first half of 2019, Oschadbank successfully completed debt restructuring with Firm T.M.M. LLC, Imperovo Foods LLC, Agroholding Avangard, and PJSC Rise-Maksymko. Two debt restructuring cases have been launched with WOG Group's companies.
Ukreximbank opened its first case with Office Construction Agency LLC, which became one of the largest in terms of the amount of debt to be restructured.
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At the same time, public sector banks are actively involved in debt collection. As of July 1, courts have more than 70,000 relevant lawsuits worth over UAH 116 billion (US$4.8 billion). Noteworthy, almost 54,000 lawsuits worth UAH 26.5 billion (US$1.1 billion) were lodged in the first half of 2019.
It is also noted that the share of non-performing loans in Ukraine's banking system remains significant, that is, 51% as of July, or UAH 581 billion (US$24 billion), of which state-owned banks account for 65%.
UNIAN memo. The state represented by the Finance Ministry owns four largest Ukrainian banks in terms of assets, namely PrivatBank, Ukreximbank, Oschadbank, and Ukrgasbank.
Ukraine's state-owned banks in 2018 reduced problem loans by UAH 5 billion, or US$206.6 million, and restructured debts by UAH 21 billion, or US$867.8 million.