National Bank requires banks to actively write off bad debts on loans

The National Bank requires banks to have, writing off bad credit debt." As the findings of statistical reporting, this work is carried out by banks in an extremely unsatisfactory. NBU administration believes that banks should be shut down for writing off bad debts in the period up to December 30, 2010, "- said in a letter to the regulator (40-511/5841-22084). Also, The National Bank offers credit and financial institutions to promptly inform the central bank about the issues which impede the implementation of operations on "clearing" the balance. In addition, the letter reminded that the cancellation of bad debts was regulated by Decree of the National Bank on September 13, 2010 (№ 424). Recall that a proportion of overdue loans in Ukraine in October 2010 increased by 0.35 percentage points - up 11.95% of total loans. In absolute terms, the volume of outstanding credit debt for October increased by 3,7% - to 89.667 billion USD, and since the beginning of the year - by 28,2% . Source: Korrespondent.net