Azerbaijan, Baku, April 6 / Trend /
Standard & Poor's credit ratings service reported that "Expenses on credit risk in banks of Russia, Kazakhstan, Ukraine, Belarus, Azerbaijan, Georgia and Uzbekistan are stabilized". It states that Ukraine and Kazakhstan faced the greatest difficulties in the banking sector during the global financial crisis.
The level of bad loans in these countries still amounts to about 40-50 percent of total loans issued by national banks, the report said.
The Ukrainian banking system lags far behind the Kazakh one in terms of formed reserves and written-off bad loans.
"Therefore, we assume that the expenses of the Ukrainian banks to form new reserves will decrease slightly from 2.5 percent in 2010 to about 2.0-2.5 percent in 2011," the report said.
The number of loans in the Ukrainian banking system was reduced by 5.6 percent in 2009. It increased by 1 percent in 2010.