"Fitch": quality of the assets of Ukrainian banks remains weak

Balance of Ukrainian banks are still saddled with large amounts of bad loans, and the process of "clearing" of portfolios by recoveries on loans and write-off is slow, this opinion is shared by the agency "Fitch Ratings". This is related to the press service of the agency. At the same time, according to the agency, there are signs of stabilization in asset quality. Based on management accounts of banks rated "Fitch", the total level of problem loans (loans overdue by more than 90 days) and restructured loans amounted to 56% at the end of 2010, unchanged from the end of 1 half of 2010, while the share of problem loans has increased from 18% to 21% in the 2 half of 2010 The agency noted that levels of problem and restructured loans vary considerably from bank to bank, compared with these averages and may be more significant in nereytinguemyh banks. According to the "Fitch", two major problems for the Ukrainian banks in 2011 as in 2010, will manage the problems of asset quality and a new lending. Their implementation should support the growth of GDP (the agency predicts growth of 4,5% in 2011 and 4,8% in 2012 compared to 5% in 2010) and the ongoing recapitalization of banks. "At the same time advancing a negative impact while the weak position of many actual and potential borrowers. In addition, the limited availability of long-term funding in local currency and has a significant level of leverage in the economy is constrained credit growth," - told the agency. Estimated "Fitch", 106 billion USD. new capital (which equals 15.8% of assets, risk-weighted at the end of March quarter of 2008.), including the new equity of $ 91 billion UAH., submitted to the banking system between 3 kV. 2008 and the end of 2010, and this process continued in an apartment. 2011 is, as noted in the agency has helped to improve the overall ability of the banking sector to absorb losses on loans, but this figure still varies significantly from bank to bank, taking into account different levels of recapitalization and loan impairment. "In addition, considerable uncertainty about the final losses on loans for the banking system and for individual banks, difficult to assess the remaining needs recapitalization", - underline the agency.