OREANDA-NEWS. November 3, 2010. Nov 2, NBU released the resolution that should adjust writing off NPLs, according to the regulator’s statement. Under a new order a bank has the right to write-off NPLs at the expense of the previously formed LLR if it meets the following criteria: the indebtedness is included into the nonrecoverable category, financial state of the borrower is unsatisfactory and payments are overdue more than 90 days. The resolution comes into effect Nov 7.

Millennium Capital: the news is POSITIVE for the entire banking sector. We are optimistic about a new decree that revamps the previous rules under which the banks were discouraged from write-offs because of concomitant tax liabilities. A new decree erases the problem of tax burden and eases charging off.