Due to the war, the share of non-performing business loans increased to 44%.

According to the NBU, since the beginning of the full-scale invasion, the share of NPL in the banking sector had risen to 44% at the beginning of October 2023, and their volume reached ₴359B.

“Two reasons for the increase in NPL are damage to or destruction of production facilities, or occupation. The lion’s share, or 60%, is due to financial difficulties of borrowers that were not directly caused by the occupation or destruction. These customers have the highest chances compared to others to return to their loan service schedule with the recovery of the economy“, – the message says.

More than three-quarters of borrowers whose capacity was not affected by hostilities continue to service debt after NPL restructuring, often including the loan body.

In general, credit losses are assessed by banks promptly and properly reflected – 55% of the analyzed loans were recognized as being in default before the debt was overdue for more than 90 days.