Central bank reports Ukraine may have already survived worst of war's economic toll
A central bank assessment of the Ukrainian banking system's resilience indicates that the financial services market has passed the peak of the crisis triggered by Russia’s full-scale invasion, reads the regulator’s latest Financial Stability Report, released on Dec. 22.
"Of the total amount of non-performing corporate loans, about a third are those that arose during the full-scale war," the National Bank of Ukraine said.
“For a significant part of the debtors, the default was caused by the loss of sales markets or a drop in domestic demand. Therefore, some of them have a chance to resume loan servicing with the improvement of economic conditions.”
An increased level of credit risks remains for companies in some industries that are recovering slowly, the central bank said. Also, some agricultural producers have faced significant financial difficulties in 2023 due to low domestic prices for their products.
"Banks generally have sufficient appetite for lending, are ready to take moderate credit risks, and in case of their implementation, effectively manage bad debts," the NBU said.
The regulator also recently determined which banks may be closed in the near future.
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