In 2016, the National Bank of Ukraine received a total of over UAH 4 billion in proceeds from the recovery of refinancing loans issued to insolvent banks.

The NBU received the largest amount of proceeds (UAH 2.3 billion) from the redemption of securities and the recovery of these assets.   Another UAH 1.04 billion in proceeds came from the recovery or sale of loans pledged to the NBU as collateral. The NBU received an additional UAH 448.6 million in proceeds from the alienation of 172 real estate items and another UAH 295.3 million was recovered from other sources.

In 2016, the total amount of recovered loans increased by  265% (or by UAH 2.9 billion) compared to 2015.  Improvements in debt recovery levels were achieved through streamlining of the functions of the NBU structural units responsible for debt collection.  In addition, the Deposit Guarantee Fund stepped up its efforts to sell the property  pledged to the NBU as collateral and transfer proceeds from the recovery of pledged loans.

It should also be noted that since January 2017 the DGF has started selling pledged property only through the ProZorro public procurement system. This move has brought greater transparency to the asset disposal process and helped attract more potential buyers of failed banks' assets,” said Director of the NBU Risk Management Office Mr Ihor Budnyk.

As a side note, on 24 October 2016, the NBU and the DGF adopted a decision to sell the pledged property through the ProZorro public procurement system.

As of 1 January, the total outstanding debt owed by insolvent banks to the NBU amounted to UAH 51.8 billion.