REUTERS
The document will provide solutions to issues that create systemic obstacles to resumption of lending to the national economy.
The Verkhovna Rada, Ukraine's parliament, has adopted bill No. 6027-d in the second reading to amend certain legislative acts of Ukraine on resumption of lending.
The draft law was backed by 239 MPs on July 3 with the required minimum being 226 votes.
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According to the National Bank of Ukraine (NBU), the adoption of the document will provide solutions to issues that create systemic obstacles to resumption of lending to the national economy and lead to additional risks for the national and foreign investors.
"With the safeguard of creditors' rights, banks will be able to put more loyal demands on potential borrowers. This, of course, will promote the active use of lending as a financial instrument, reducing the cost of credits and facilitating the access of business entities and individuals to the use of banking products," the NBU said in a statement.
The regulator added that a complete resumption of lending was blocked by a number of gaps in the current legislation of Ukraine, which reduced the efficiency of the country's banking sector. According to the NBU, they include the non-functioning institution of guarantees, a complex and risky mechanism for determining a variable interest rate, the imperfection of the instruments of extrajudicial settlement, and a set of norms that carry risks of withdrawal of collateral contrary to the obligations under loan agreements. The central bank says that the draft law is designed to eliminate the existing legislative gaps.
As UNIAN reported earlier, the Rada supported the bill in its first reading on May 17, 2018. NBU Governor Yakiv Smolii said then the adoption of the document would solve the problems that create barriers to lending.