On May 3, UKRN CB updated regulations for non-performing assets.
UKRN CB approved changes to a number of legal acts to ensure their compliance with requirements of EU legislation regarding the definition of non-performing assets.
Amendments
The term "non-performing assets" was introduced in the regulations on the Organization of the Process of Problem Asset Management in Ukrainian Banks in accordance with Regulation of the European Parliament and Council 575/2013.
In addition, non-performing assets now include depreciated financial assets as well as restructured assets with repayment delays of over 30 calendar days.
UKRN CB stated that the term "non-performing assets" in banking regulations was replaced with "defaulted assets" to align with EU Regulation's definition of default.
Expectations from introduced amendments include strengthening management system of non-performing assets, enhancing efficiency, and reducing non-performing loans.
Furthermore, the proposed changes align Ukrainian loan statistics with European standards, improving the transparency of the financial sector in the Ukraine.
These changes will serve as the basis for developing a strategy for settling non-performing loans in Ukraine, enhancing the banking sector's investment attractiveness.
Effectiveness
Changes will be effective from Jan. 1, 2025, providing banks with time for internal preparation and the changes are approved by Res 52.
