Complaints of delay in Ukrainian MFIs are increasing


During the quarantine period, the amount of debt issued by non-banking financial institutions declined 2.5–3 times amid increasing risks of their default.


Ukrainian microfinance organizations noted a 20–70% increase in the share of overdue loans in their lending departments. At the same time, the average non-return share was around 20% in 2019. It was reported in the Association of Financial Institutions.

According to AFI, during the quarantine period, the amount of loans issued by non-banking financial institutions decreased 2.5–3 times amid increasing risks of its non-repayment due to lower income. The association also noted that one reason for the default is the ban on imposing fines and penalties for failure to meet debt obligations. According to market experts, during the period of the ban, the already ideal financial discipline of borrowers has not deteriorated significantly.

MyCredit director Dmitry Stangeya confirmed the market trend – during the quarantine period, the company’s loan portfolio also deteriorated. “This is a natural situation, as part of the customers were left without a steady income and, therefore, they are not able to repay the loan due to objective reasons. Speaking in numbers, the percentage of non-returns has more than doubled, ”said Dimitri Stanzya.

Furthermore, in parallel, demand for services in the microcredit segment also decreased due to the fact that Ukrainians began to use accumulated funds, they are more responsible for spending including borrowings.

According to the API, three out of five MFIs expected improvement after quarantine.

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According to the content “Economic reality”


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