A rising wave of disputes in the Ukrainian banking sector mean
that banks must strengthen legal departments and assess their
non-performing loan portfolio.
Just a couple of years ago, Ukraine's economy was in robust
shape, and one of the most attractive targets for foreign
investors. Political tensions had not affected the highest GDP
growth figures in the region, which stand at 7.6% as a yearly
average. Rapidly rising standards of living pushed demand for
consumer goods, and there is increased global demand for the major
Ukrainian export products, such as metals, machinery and chemicals,
with expected returns on invested capital higher than anywhere else
in Europe.
Taking on a general trend from Central and Eastern Europe, the
Ukrainian banking market also experienced an unprecedented boom in
2006 and 2007. Banks were the fastest growing part of the economy,
expanding their assets by over 50% every year. International majors
such as BNP Paribas, Reiffeisen,
