The NBU estimated the losses of Ukrainian banks due to the war

Banks in Ukraine will lose 20% of their loan portfolio due to the Russian invasion. On Tuesday, June 21, Deputy Head of the National Bank Sergei Nikolaychuk spoke about the damage to the financial sector of Ukraine.

“Unfortunately, the risk of a full -blown war has ensued. This has led to a deep crisis that will have far -reaching consequences for the financial sector. As a result of the war, we expect GDP to decline at least. in a third this year. We expect inflation to accelerate and exceed more than 20%, “he said.

The NBU noted that due to reductions in reserves, the banking sector became unprofitable for the first time in five years.

At the same time, the losses of banks from credit risk will grow – at least 20% of the loan portfolio.

According to the NBU report, in the zone of greatest risk are the loans issued in temporarily occupied regions and in territories where active fighting takes place. According to the NBU, their share is 13% of the total mortgage issued over the past two years, or UAH 1.7 billion.

The NBU states that borrowers with problem loans, whose mortgaged property is destroyed or damaged, will require mechanisms for reorganization and compensation for damage to restore the old or buy new housing.

“Losses in the mortgage portfolio should not be borne only by banks. They should be considered during the development of a mechanism for compensation of damages in Ukraine,” the report said.

By the end of May, since the beginning of the massive war, 44 million square meters had been damaged. m of housing, which equates to a loss of $ 39.4 billion, according to Central Bank data from the Kyiv School of Economics.

Recall that for the war period in Ukraine introduced a guarantee of 100% on deposits of individuals.