The Ukrainian microfinance organizations noted an increase in the proportion of overdue loans up to 20-70% in their loan portfolios, while in 2019 the average share of bad loans was about 20%.
About this informed the Agency “Interfax-Ukraine” in the Association of financial institutions.
According to API, during the period of quarantine, the volume of loans to non-Bank financial institutions, decreased 2.5-3 times on the background of rising risks of non-repayment because of lower incomes.
The Association noted that one of the reasons of no return is also a ban on the accrual of fines and penalties for failure to comply with obligations for the payment of credits, adding with reference to market experts, that the prohibition period has considerably worsened and without that not ideal financial discipline of borrowers.
As the Director of the company MyCredit Dmitry Stanza, for the quarantine period, its loan portfolio also deteriorated.
“This is a natural situation, since some customers were left without a stable income, therefore, is not able to repay the loan due to objective reasons. Speaking in numbers – the percentage of default more than doubled”, – he said.
According to Stanzi in parallel also decreased demand for services in the segment of microcredit in view of the fact that the Ukrainians began to use the accumulated funds, more responsible approach to spending, including to credit.
As noted in AFI, three of the five interviewed companies have launched programs to support clients, in particular two of them – the restructuring of loans.
According to AFI, three of the five MFIs interviewed expect the improvement of the situation after the end of the quarantine.
According to the Director “Switchrole” Alexander Cold, the Ukrainian MFI will return to the level of February, no earlier than one year and full recovery will take six months to two years. He believes that these terms also refer to the quality of customers who use the services of fast loans.