“From PrivatBank the NPL ratio is 84.5%, and we understand that to solve the problem of existing tools is impossible. We spent a lot of consultation and analysis, counted the options and the costs, including the work of collectors. The proposed program restructuring is not a concession to the hundreds of thousands of customers, and a clear miscalculation economically viable algorithm of financial institutions, upon evaluation of the borrower’s financial position and prospects of legal work with a debt” – about it in the comments for ZN.UA said the Chairman of the Supervisory Board of PrivatBank Engin Akchakocha.
According to him, it increasingly is the problem of the accumulated fines and penalties, the volume of which greatly exceeds the amount of the credits themselves and the accrued interest. This means that it is impossible to collect from the borrower due to its financial situation or lack of collateral. The existence of such obligations only distorts the real financial condition of the Bank.
“I would rather frostily spoke about the economic impact of the proposed program: when will it be implemented, PrivatBank will reduce the portfolio of retail bad loans by 10%. For us more important is the creation of a qualitatively new methodologies and practices, life practical experience of working with toxic clients, that is, “in the field”, and finally, feedback is important to us from other banks, primarily the state. We give them a signal: there are no unsolvable problems, if these problems are addressed properly and adequately, – said the source. – PrivatBank will always look for mutually acceptable solutions for their customers, but PrivatBank will never become Santa Claus. We are waiting for the painstaking work of monitoring the implementation of the restructuring program, thorough testing methods and technologies, coordinated work of all services of a large professional team PrivatBank”.