The National Bank encourages foreign investors to purchase non-performing loans of Ukrainian banks.
According to Governor of the National Bank of Ukraine Valeria Gontareva, as of today, the regulator removed all limitations for investors, so that they enter the factoring market, she said behind the scenes at Dragon Capital’s 13th Annual Investment Conference, according to Finance.UA.
“When I heard that the oldest Italian bank sells non-performing loans with the discount of 25%, I laughed. Our dream is to sell debts with the discount of 75%”, - she said.
The key problem for the interest of investors is the weak protection of lenders’ rights.
“Currently, our banking system has a large portfolio of non-performing loans. However, by purchasing the portfolio of bad loans, you purchase a ticket to the war”, Gontareva said.
It should be reminded that previously, NBU reported that the amount of non-performing loans in the banking system will reach 50% and higher, if we do not change the system of relationships between lenders and borrowers, and ensure a fair judicial system.
International organizations get involved in solving this issue.
“Speaking about international organizations, at their suggestion we managed to implement reforms in NBU and the banking system. Today, with their help we can create the fund of bad loans. They want to give money there; however, the initiative is with us”, Gontareva told.
