The fall of the hryvnia, rising unemployment and high inflation could force borrowers
abandon its commitment to auto loans . The second wave of crisis
many of them may enter on foot .
The growth problem is largely due to auto weakening national
currency. More than 70% car loans have been issued with reference to the dollar, while
the income of the majority of borrowers are fixed in local currency. The current decline
hryvnia can greatly exacerbate the situation with problem loans. One of the
authoritative experts of the currency market, Eric Naiman predicts a further
deterioration of the position of the national currency. According to his calculations to the end of the summer course
reach 10 grn / dollar. According to estimates of the Association of Collecting
Ukrainian Business volume of bad loans of commercial banks by end-2009
city вЂ‹вЂ‹may reach 34%. The total arrears amount to more than 70
bln. Experts say the organization's rapid growth of "bad"
loans. In the first half of 2009 the share of problem assets in
commercial banks increased by 73%. Does not contribute to payments on loans
and rising unemployment. Late last year, the director of the State Service
Employment Vladimir Galitsky predicted unemployment in 2009 at
7-8%. Already in March this year, more than two million Ukrainians formally
were considered unemployed. Now evaluate the real extent of unemployment in the country
in practically impossible, since a very small percentage of unemployed is
registered at the Employment Service. Bad effect on the repayment of loans and the increased
costs of borrowers. Food as compared to last year rose
at least twice. The same can be said about the prices of fuel, clothing and other
consumer goods. Further devaluation of the hryvnia will lead to further
higher prices for most commodities. Borrowers who can not perform on time
their credit commitments, often resort to debt restructuring.
Banks usually go to meet their clients. In most cases, they are allowed
pay only interest, not paying back the body of the loan. Naturally in such
If the bank earns more but the growing currency risks can discourage
banks' desire to freeze the funds. Borrowers who simply do not pay
not so much. According to various estimates, their share is now in the portfolios of auto loans
from 6 to 11%. To collect debts from unscrupulous borrowers
Many banks use the services of collection companies. Some banks
even willing to sell distressed debt. However, collection companies and banks,
who are trying to recover the funds granted for the purchase of a car
encounter many problems, if the customer does not return voluntarily pledge.
"With the implementation of the new car on a system of judicial proceedings for repayment of
debt on the loan will be less than half the market value of the car, "
says the director of a company. "The lion's share of payments absorb
various legal costs, "he said. It turns out that the lender is unprofitable
forcible seizure of collateral. Suing the borrower makes sense only if
but the pledge he has a car or other property real estate.
According to the law for failure to meet its obligations to all its borrowers
property. Following the first wave of the crisis can safely say that
credit cars Ukrainians are very reluctant to part. Regardless of
increased load, the majority of borrowers continue to perform its obligations.
But what impact will further weaken the national currency is still unknown.