Friday, July 3, 2015

Parliament allows restructuring of foreign currency loans. NBU, Finance Minister insist on rejection

Ukrainian MPs on the second attempt passed in the first reading bill No 1558-1 on restructuring of liabilities on loans in foreign currency.

The bill was supported by 229 MPs.

The bill provides for all banks to be obliged within a month to restructure the obligations under the credit agreement at the official NBU rate on the date of the loan agreement at the written request of the citizens of Ukraine who had outstanding obligations under the loan agreements in foreign currency.

The National Bank of Ukraine has already made the statement, insisting to reject the bill.

"The adoption of bill No 1558-1 will destroy financial and banking system as it provides for obliging the banks to convert all consumer loans in foreign currency at the exchange rate at the time of signing the contract (approximately UAH 5.05 / USD 1). It will pose a threat both for stability of the banking system and the well-being of all citizens," the NBU statement reads.

In turn, Finance Minister of Ukraine Natalie Jaresko posted on her Facebook that “the losses to the Ukrainian banking system from the bill No 1558-1 on restructuring of liabilities on loans in foreign currency will make up UAH 95 billion.”


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