The share of non-performing loans (NPL) in the Ukrainian banking system exceeds 40%, Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova has said.

"Share of NPL in banks is over 40%. This indicator suits for countries with crisis economies. The NBU hopes that the bill on pretrial restructuring will be finally passed [adopted at first reading], and it is working on its implementation," Rozhkova said at a roundtable on Tuesday.

She also said that banks have been capitalized by some UAH 70 billion.

"Over 70% of the banking system is in process of capitalization, in this fruitful process. Around UAH 70 billion has been sent for additional capitalization. This positively influences their balance sheets, ability to restructure loans, including currency-pegged loans," she said.

Rozhkova said that the NBU conventionally divides troubled loans into three groups.

She said that the first group includes loans issued to earlier profit-making businesses, but with overestimated business plans. They did not take into consideration force majeure circumstances in their risks and they suffered from the military conflict in eastern Ukraine. A rescheduling of these loans is required.

The second group has loans with a large overestimated cost of business, for example, in building business centers and hotel business. Additional investment or discount rescheduling is required for them, she said.

The third group includes loans to affiliated persons.

Rozhkova said that joint efforts of banking society, the regulator and amendments to law are required to settle the problem.

Executive Director of the Independent Association of Banks of Ukraine Olena Korobkova said that bill No. 4529 on increasing protection of rights of creditors was registered in parliament on Tuesday. It is an alternative to bill No. 2286a, which was rejected by the Verkhovna Rada a year earlier.