NBU determines criteria for write-off of banks' impaired financial assets
News Line
Ukraine reports 5,276 new COVID-19 cases Zelensky: Every third Ukrainian considers road construction one of greatest achievements of 2021 Ukraine ready to implement Minsk agreements, but Russia's desire needed - Yermak Michel: EU unanimously agree to roll over economic sanctions against Russia Actions by Ukraine's partners will help prevent worst-case scenario - Zelensky COVID-19 in Ukraine: Health officials confirm 8,899 daily cases as of Dec 17 Macron tells Zelensky he declared support for Ukraine in call with Putin Zelensky, Scholz discuss gas transit through Ukraine after 2024 Ukraine ready for any format of talks with Russia - Zelensky Ukraine’s only journalist in Russia facing extremism charges - lawyer PM Shmyhal: First two applications for investment projects worth $96 million filed Zelensky, PM of Italy discuss security situation around Ukraine President signs off State Budget 2022 London considering all options for responding to Russia's aggression against Ukraine Putin, Biden to hold another round of talks Some 260,000 Ukrainians “victims of human trafficking” over 30 years - prosecutor general Ukraine plans to create center to protect energy infrastructure from cyber attacks No clear idea so far when Normandy Four top diplomats set to meet - German Ambassador Ukraine receives EUR 600M in macro-financial assistance from EU Zelensky holds phone conversation with PM of Israel Ukraine sets new daily COVID vaccination record MFA: European Union has not yet removed Ukraine from list of safe countries Kyiv records 1,023 new COVID-19 cases, 29 deaths G7 ambassadors welcome adoption of law on NABU status Ukraine can increase Covid vaccination rates to 1.5M a week – Liashko

The National Bank of Ukraine (NBU) has determined the criteria for writing off the impaired financial assets of banks from reserves for expected losses, which will allow banks to get rid of non-performing loans, the central bank's press service has reported.
"A bank may write off impaired financial assets in the absence of reasonable expectations about their recovery. The write-off occurs if the reserve was formed for such an asset in accordance with IFRS 9 Financial Instruments in the full sum of its gross carrying amount and if one or more of the following criteria apply: overdue repayment of the debt or a part of it exceeds 36 months; the bank did not receive any significant payments in the previous 36 months (more than 10% of the carrying amount of such an asset); the bank did not receive any significant receipts from the sale of the pledge or the enforcement of the security, or the bank did not have access/redemption/recovery of the collateral during the previous 36 months; the bank failed to sell such a financial asset three times in a row; the bank has information that the debt on this asset has been written off by another bank," the report reads.

It notes that the bank has no right to determine more favorable criteria for writing off the impaired assets of debtors related to the bank.

The NBU noted that the write-off is not debt forgiveness. The bank may continue to settle the debt to recover it.

Banks are tasked with analyzing impaired assets for the presence of these criteria and writing them down every year, starting from 2020, until October 1. The relevant information should be provided to the National Bank of Ukraine by November 1 of the current year.

These criteria are defined by NBU Board resolution No. 49 of April 13, 2020 on determining the criteria for the write-off of impaired financial assets of Ukrainian banks at the expense of valuation reserves for expected credit losses. The resolution enters into force on the day following the day of its official publication.