Among the negative factors – the situation in the Donbas and political instability.
International rating Agency Standard&Poor’s rated the banking system of Ukraine as a high-risk methodology assessment of industry and country risks of the banking sector (Banking Industry Country Risk Assessment BICRA).
“Despite some improvement in the macroeconomic situation in Ukraine in 2016 and further improvement in 2017, the risk of the Ukrainian banking system remains one of the highest in the world, which is reflected in its rating of 10 (highest risk)”, – the report says S&P.
According to the Agency, key factors in the high financial and operational risks for Ukrainian banks are still tense situation in the East of the country, as well as political instability.
In addition, Ukraine’s banking system is exposed to a high debt burden. In 2018, will have substantial payments on external debt, and high debt burden of the corporate sector, which has about 80% of the debt in foreign currency.
The Agency expects that the risk of the banking system of Ukraine will continue to remain high.
According to estimates by S&P, Ukrainian banks in 2017 will show a very high level of loan losses and problem loans. The banking system remains prone to Deposit outflows, and its access to the capital market is limited.
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