KIEV, Dec. 23 – The large volume of bad credits, bad financial state of borrowers and the low level of legal protection of creditors would hinder the development of the Ukrainian banking system in 2011, according to heads of the largest banking associations of the country.

"Stagnation with elements of recovery [is expected in 2011]… It's unlikely that we can be optimists next year with such a sick economy being in the debt prison," Association of Ukrainian Banks (AUB) President Oleksandr Suhoniako said.