In Ukraine, almost a third of loans are overdue, but banks are in no hurry to go to court.

Due to the war, in 2022 the share of NPLs (loans past due within 90 days) in the Ukrainian banking system increased from 34% to 39%, Opendatabot informs. To resolve an overdue loan situation, banks has two options: sue the debtor in court or sell this debt to external collectors. Last year, Ukrainian banks acted as parties in 56,670 court cases, 37% less than before the start of the war. A dozen banks most often involved in lawsuits reduced their activity in 2022. The state-owned PrivatBank and Oschadbank filed half as many cases as in 2021. The most significant drop, by 200%, in lawsuit procedures was observed at A-Bank. Analysts believe that given the low activity in courts, banks are preparing to sell loan portfolios to collectors, leading to increased losses and corruption risks.