KIEV, Feb. 18 – Ukrainian banks could operate without loss in 2011, according to Association of Ukrainian Banks President Oleksandr Suhoniako.

"Some banks posted loss [in 2010]. I think that in 2011 they would not have losses. I think this year will be a zero balance or a slight surplus [for the whole banking system]," Suhoniako said at a press conference in Kiev.

He said that banks that accumulated a large amount of bad credits have formed reserves for the bad credits and start writing them off.

As reported, according to the National Bank of Ukraine (NBU), a total of 35 banks saw net loss in 2010, or 20% of their total number. The consolidated net loss of 175 operating banks in 2010 came to UAH 13.027 billion, while in 2009 the indicator for 180 banks stood at UAH 38.4 billion.