Large debt burden of companies hinders resumption of crediting in Ukraine – NBU chief
The large debt burden of companies is one of the key factors hindering the resumption of crediting in the country, Governor of the National Bank of Ukraine (NBU) Valeriya Gontareva has said.
"We have a reason – the large debt of business on credits. At present, the ratio between the debt and operating profit in all sectors, apart from agriculture and mining industry, is 5%," she said at a meeting of the profile parliamentary committee in Kyiv on Wednesday.
Gontareva said that the low ratio is evidence that operating profit of borrowers is not enough to cover credit rates.
"If in mining and metal sector the ratio between the debt and EBITDA was three or four times, this was normal [with attraction of new credits]. For retail companies the ratio could be five times. If today it reaches 20 times, how a bank can issue a new credit to a company? To have it 30 or what?" she said.
She said that Ukrainian enterprises need some time to restructure their debts to banks.
"Clients also should have time to restructure their debts, as we gave three years to banks to increase their capital. Banks have time to settle the issue with their clients," Gontareva said.
