In Q2 2016, the National Bank of Ukraine received UAH 163 million from the sale of assets pledged as collateral by insolvent banks against refinancing loans. The proceeds from the sale of collateral more than doubled compared with  the amount received in Q1 2016 - UAH 92.3 million, bringing the total amount recovered by the NBU in H1 2016 to UAH 255.3 million.

The proceeds from the sale of the real estate pledged as collateral by CB Nadra PJSC, BROKBUSINESSBANK PJSC and Bank FORUM PJSC accounted for the largest portion of this amount.

Director of the NBU Risk Management Department Mr Ihor Budnyk said that lengthy bank resolution proceedings hampered efforts to step up the sale of assets pledged as collateral. In Q2 2016 such proceedings in respect of many failed banks came to a close, enabling the DGF to step up the disposal of assets pledged as collateral.

In H1 2016, the insolvent banks settled their debts on refinancing loans granted by the NBU for a total of UAH 2.5 billion. A reduction in the outstanding debt can be attributed, among other things, to the NBU’s repossession of Ukrainian government bonds pledged by VAB BANK PJSC as collateral against refinancing loans.         

In 2015, UAH 1.1 billion in outstanding debt  was actually repaid by insolvent banks.