The operational three-year plans of state-owned banks to reduce non-performing loans (NPL), approved by the Financial Stability Council on June 30, provide for a reduction in NPL in the banking system from 51% to 32%, and in state-owned banks from 66% to 31% by 2023, the press service of the National Bank of Ukraine (NBU) told Interfax-Ukraine on Tuesday.

According to the report, in absolute terms, the NPL level is expected to decrease by UAH 305 billion in three years.

State-owned banks plan to achieve such a level of NPL by writing off troubled assets from their balance sheets, including loans for which a reserve of 100% has already been formed.

"According to the NBU regulations, cancellation does not mean debt forgiveness. Banks will continue to defend their interests in collecting debts from owners," the regulator said.