The losses from the banking crisis of 2014-2017 in Ukraine are estimated at 40 % of the GDP. This is stated in the study “Leasing Industry in Ukraine: Trends and Recommendations for Growth”, which was presented at Ukrinform.
“Losses from the banking crisis of 2014-2017 in Ukraine amounted to about 40 % of GDP. The number of banks has halved,” the study said. In addition, it is noted that even those banks that remained in the market, the level of unemployed loans reaches more than half of the loan portfolio, and, for example, in Privatbank, it reaches 80 %. “Many of the remaining banks have an extremely high level of unemployed loans (56 % of the total loans and over 80 % – Privatbank),” the authors of the study note.
USAID cites these data as one of a number of factors hampering the development of leasing in Ukraine. “If you add significant gaps in the legal and regulatory framework, problems with the judiciary and corruption, then it’s easy to understand why the risk in the leasing business is of concern,” the presentation said.