Western banks are ready to leave Ukraine
Many western banks can go away from the Ukrainian market, if Ukrainian authorities do not guarantee equality of rights of creditors and borrowers, because many western banks suffered from credit frauds with participation of large and solvent business corporations in Ukraine. In Kyiv assume that the freed niche will be occupied by the Russian banks. But they also can face the same problem.
At present, 176 banks work in Ukraine, including 53 with a foreign capital. To this group belong as well 9 Russian banks, that in the last few years considerably extended their presence on the Ukrainian market: according to official information, now 15.5% assets of all Ukrainian banking system are concentrated in the hands of Russians, that control 16.3% of all credit and investment resources in Ukraine.
Though, the National bank of Ukraine (NBU) considers that Ukrainian financial sector recovered from a crisis and is stable, the international rating agency Moody's Investors Service announced a negative outlook for the Ukrainian banking system. One of the reasons for pessimistic estimation experts named the high share of bad loans - till 35%. According to some data, the volume of NPLs in the portfolios of Ukrainian banks exceeds $10 billion and continues to grow.
Specialists say about the extension of such a phenomenon: large and fully solvent debtors - legal entities – remove credit resources abroad under the guise of trade operations, and then begin procedure of bankruptcy getting in Ukrainian courts the right not to return debts to their creditors.
Till recently creditors preferred to suppress such a problem, fearing that it would negatively impact their reputation. However, in winter three banks with a foreign capital appealed for help to the President of Ukraine, General Prosecution Office, Security Service, Ministry of Internal Affairs and State Tax Administration. In a letter they explained in details the chart of swindle on the example of the activity of large company dealing with production of packing “Hacro Pat”, that borrowed millions dollars in banks and moved credit resources abroad using the above mentioned chart. Then the company declared insolvency.
Now the representatives of sufferings banks began to prepare for informing society about their problems. An unprecedented press-conference is being prepared in Kyiv, where the participants plan to name business corporations, engaged in financial swindle in especially large sizes. Some financial institutions with a western capital may either reduce or minimize their work on the Ukrainian market.