Moody’s says Ukrainian banks emerge from the crisis

Moody's: Украинские банки выходят из кризиса

Moody’s gave the forecast for Ukrainian banks

The level of problem loans in Ukraine decreased.

In Ukraine’s banking system has overcome the crisis and out of a state of insolvency. This was stated by the Director of the banking group Moody’s Yaroslav Sovgira, transfer Ukrainian news.

“We expect that the level of NPLs in the banking system of Ukraine will decline due to restructuring, debt relief, due to the fact that the economy is growing, interest rates decrease, there is moderate growth of the loan portfolio. But now the level of bad loans in Ukraine is the highest in the CIS and Eastern Europe. In order for troubled debt reached acceptable level, you need a few years”, – said Sovgira.

According to him, the profitability of banks in Ukraine will increase by reducing allocations to reserves.

“The main part of resources is already formed. Indeed the reduced level of funding following the fall of inflation and begins to grow lending. This should ensure growth in operating profit is moderate, but the system let out for a break-even point, which is a big progress compared to last year. Although the system will be profitable next year, will be a large number of unprofitable banks,” said Moody’s.

We will remind, recently the International rating Agency Moody’s Investors Service has upgraded the rating of the state of PrivatBank, Oschadbank and Ukreximbank, as well as private Raiffeisen Bank Aval, Prominvestbank and Pivdenne.