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Committee on State-Owned Banks’ NPLs Resolution Holds First Meeting

22 October 2018

Press Release


The Task Force (the Committee) on the Resolution of State-Owned Banks’ Non-Performing Loans has held its first meeting at the National Bank of Ukraine. The Committee has been established by the respective decision of the Financial Stability Council.


As per the procedure, the Committee includes Acting Minister of Finance Oksana Markarova, NBU First Deputy Governor Kateryna Rozhkova, Deputy Minister of Finance Yurii Heletii, Masaru Tanaka, Advisor to the Minister of Finance, Director of the Legal Department of the Ministry of Finance Olena Skrypkina, Director of the NBU Financial Stability Department Vitaliy Vavryshchuk, Director of the NBU Banking Supervision Department Nataliia Dehtiariova, Director of the NBU Legal Department Oleh Zamorskyi, and Deputy Managing Director of the Deposit Guarantee Fund Svitlana Rekrut.


During the meeting, the Committee members discussed current issues faced by state-owned banks due to NPLs, and key obstacles preventing the effective protection of the banks’ interests from irresponsible borrowers. The Committee approved a decision to develop general NPL resolution principles for state-owned banks. The principles are scheduled for approval by the Committee at its next meeting.


"The start of the Committee’s work represents a milestone in addressing the NPLs of state-owned banks. NPLs make up nearly 70% of state-owned banks’ portfolios. This is a systemic problem. The difficulty arises from the existence of joint borrowers servicing their loans at certain private banks, rather than state-owned banks. Regular discussions by the Committee will, among other purposes, facilitate the development of optimal terms of loan restructuring for such borrowers," Kateryna Rozhkova said.


Pursuant to the Committee’s decision and taking into account IMF recommendations, the Ministry of Finance will, starting in late December 2018, regularly inform the public on the progress of NPL resolution at state-owned banks.


For reference: The Committee (the Task Force) on the State-Owned Banks’ Non-Performing Loans Resolution was established by the respective decision of the Financial Stability Council in July 2018. The Committee comprises representatives of the National Bank of Ukraine, the Ministry of Finance, and the Deposit Guarantee Fund. The Committee is expected to develop and deliver NPL-related recommendations to state-owned banks’ management bodies.

Last modification   22.10.2018