How to Clean Banks of "Bad" Loans?

Економічна правда

Despite years of commitments to the IMF and the World Bank, Ukraine still lacks an effective mechanism for cleansing state banks of non-performing loans. Today, more than 80% of NPLs are concentrated in the state sector — this blocks normal lending and "freezes" billions of hryvnias of capital that could be working for the economy.

In his column for Ekonomichna Pravda, Illia Mykhailov, Strategy Expert at the EU-LEAP analytical center, explains how Draft Law No. 11138 could change the situation.