31 March, the Verkhovna Rada approved as a basis the draft Law "On
financial restructuring",elaborated by the Ministry of Finance jointly
with the National Bank and the Independent Association of Banks of Ukraine
(NABU) in compliance with best international practices. The Ministry of Finance
welcomes the successful adoption by the Verkhovna Rada in the first
reading of this bill and urges the MPs to support the bill as
whole.
The Ministry of Finance is actively working on the recovery of the public
financial system and stabilization of the banking sector. These steps are aimed
at Ukraine’s economic growth, thereby the Ministry of Finance is
taking resolute steps to solve structural economic and financial issues in
Ukraine.
The draft Law of Ukraine “On financial restructuring” was developed taking
into account best international practices and is aimed to revitalize business
activity and to resume loan supply by banks which will facilitate to lay the
basis for sustainable economic boost in Ukraine. Inter alia, the legislative
framework shall lay solid ground to settle the debt burden on Ukrainian
companies which are temporarily unable to re-pay their debts.
“The approach used in this draft law makes it possible for companies with
an effective and potentially successful business model to settle their debts,
to avoid bankruptcy and thus to return to growth”, Minister of Finance Natalie Jaresko said.
The Minister of Finance also emphasized that the draft law is not to be
seen as a mechanism meant to escape payments on the loans: companies which are
not viable won’t be able to use it. To prevent misuse or manipulation of the
financial restructuring process, the affiliated entities of debtors won’t have
a possibility to influence it. Also, the financial restructuring procedure is
voluntary; companies are not obliged to participate in it. The procedure is
only possible with the consent of all parties involved and under terms and
conditions that satisfy each party.
“The efficient financial restructuring procedure for companies will help to
resume business activity of viable companies, speed up the “recovery” of the
real economy and financial sector which in turn will help to save the existing
and create new jobs», the Ministry of Finance stressed.
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