REUTERS
The cooperation memorandum signed between Ukraine and the IMF envisages no state involvement in talks between foreign currency borrowers and banks, and Ukrainian President Petro Poroshenko will most likely use his veto power if parliament adopts a law on foreign currency loans restructuring, members of the parliamentary committee on finance and banking policy have said.
This was the topic of discussion at a recent meeting of the committee, Ukrainian news broadcaster TSN has reported.
The reason is that the cooperation memorandum between Ukraine and the International Monetary Fund says the state should not intervene in bilateral talks between borrowers and banks on the restructuring of foreign currency loans.
"One of the most negative conclusions of the experts of the International Monetary Fund … [is] that the new memorandum with the IMF, in accordance with which Ukraine has requested an extended funding program (IMF’s Extended Fund Facility) worth of $17.5 billion, includes a commitment for the Ukrainian president to use his veto power on any law on restructuring foreign currency loans adopted by the parliament," the committee noted in a statement.
At the request of representatives of the Credit Maidan activist organization to nevertheless submit several draft laws on loan restructuring for consideration by parliament, committee chairman Sergiy Rybalka said: "We are ready to submit these bills. But we will surely face a presidential veto. We are not populists, who would consider bills only for show. We and currency borrowers need a concrete result," Rybalka said.
The participants agreed to hold further consultations on the matter.
As earlier reported, commercial banks have voiced their readiness to "forgive" 50% of mortgage currency loans to borrowers, but this would require additional changes in the legislation.