Companies@UA: База компаний Украины

Kyiv, July 29 (Interfax-Ukraine) – The Associated Collecting Business of Ukraine (ACBU) is in talks with the International Finance Corporation (IFC) on setting up a fund to buy up banks' problematic assets, the ACBU's press service reported.

"The ACBU is in talks on a joint project with the IFC on the creation of a fund to buy up banks' problematic assets. We're also closely cooperating with the Association of Ukrainian Banks, the Ukrainian Credit and Bank Union, and the Justice Ministry to polish the legislative base, which will make it possible for debt collecting companies and banks to cooperate more efficiently," the ACBU press service said.

The ACBU forecasts that the problematic assets in Ukraine's banking system may hit a critical level late in 2009: The dynamics of the worsening of the quality of banks' loan portfolio have already led to a decrease in liquidity, as well as a disastrous decline in the level of the banks' earnings.

"The overall amount of commercial banks' problematic portfolio in the consumer crediting segment by the end of 2009 might hit 34%, which is over UAH 70 billion," reads the press release. "This figure is critical for the country's banking system."

Yet, the source said, banks currently hand over about 11% of the overall amount of bad credits to debt collecting companies, which is not a considerable figure.

According to the ACBU, on the Ukrainian market there are about 10 backbone debt collecting companies and over 15 regional organizations, which could jointly handle up to 80% of banks' problematic assets.

The ACBU was set up in December 2008. It is member of the Federation of the European National Collection Associations (FENCA).