Tuesday, June 14, 2016

Ukrainian Parliament passes bill on financial restructuring

Ukraine's Verkhovna Rada on Tuesday passed at second reading bill No. 3555 on financial restructuring, which will introduce a mechanism of the voluntary financial restructuring of debtor enterprises with a view to resolving the situation with problem loans and resuming lending to the economy by banks.
An Interfax-Ukraine correspondent has reported that 229 lawmakers backed the document.
The bill was drawn up by the Finance Ministry jointly with the National Bank of Ukraine (NBU), the Independent Association of Banks of Ukraine (NABU), the European Bank for Reconstruction and Development (EBRD) and World Bank. It is a benchmark in the Extended Fund Facility (EFF) program financed by the International Monetary Fund (IMF).

"The bill is an important tool for settling the situation with troubled loans of banks. It would help to revitalize the banking system, restore solvency of companies and retain jobs. Banks will be able to reduce the volume of troubled loans and send funds to credit the economy," the Finance Ministry wrote on its Facebook page.
The NBU and Finance Ministry welcome the adoption of the document.
"We have become one step closer to the acceleration of restoration of the economy and settling the issue of troubled assets in the banking sector," the NBU said on its website, citing Deputy NBU Governor Vladyslav Rashkovan.

The NBU recalled that financial restructuring foresees the revision of the payment terms, interest rates and the provision of a new loan to the debtors and haircut of a part of the debts.

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