The solvency of the business in Ukraine has improved

The national Bank intends to encourage banks to more actively work with problem debts.

The solvency of the business in Ukraine improved in the stabilization of the economic situation, the National Bank of Ukraine (NBU). In this regard, the regulator intends to encourage the work of banks with bad debts.

As stated by the Director of the financial stability Department of the Central Bank Vitaly vavrischuk, the macroeconomic environment has changed little over the last six months: economic growth remains very low.

At the same time, he says, have significantly improved the solvency of borrowers banks as companies in the real sector and households.

As said the Deputy Director of the financial stability Department of the NBU Eugene Dubogryz, the EBITDA margin of the real sector to the end of the third quarter exceeded 12%.

Moreover, other debt indicators, such as debt to EBITDA and coverage of interest expenses operating profit show that currently, for most sectors, except chemical and building, the payment of interest is not a problem.

According to the Deputy head of the NBU Catherine Rozhkova, some banks in the direction of improving the structure of their assets is yielding results: the awareness of borrowers are beginning to restructure its debt and to cooperate with the banks.

At the same time, she added, there are a number of borrowers who today do not seek to engage in constructive dialogue, so the national Bank intends to contribute to the resolution of this situation.

In addition, added Rozhkova, the regulator intends to encourage banks to more actively work with problem debts.

According to Vavrischuka, a large part of non-business loans total loans to large business groups, which today have not been willing to service these loans. Attempts to restructure this debt often have too high appetites troubled borrowers.

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