REUTERS
The draft law proposes a joint financial restructuring procedure for several debtors who are affiliated entities.
The Verkhovna Rada, Ukraine's parliament, has passed a bill to streamline the financial restructuring procedure.
The document, which was considered in the second reading and as a whole, was backed by 300 MPs with the required minimum of 226 votes, an UNIAN correspondent reported on September 19.
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Head of the Financial, Tax and Customs Policy Committee Danylo Getmantsev, while reporting on the bill, said the document would create more favorable conditions for financial restructuring.
"Financial restructuring is a procedure, applying which the debtor can restructure own debts before to financial institutions. With this bill, we propose changes to the procedure that will make it easier and expand the possibilities of its application," he said.
The draft law proposes a joint financial restructuring procedure for several debtors who are affiliated entities (a group of legal entities under common control, but with different creditors), according to the explanatory note to the bill.
"The adoption of the draft law will eliminate certain drawbacks of the legislation identified during the practical application of the norms of the law, and will contribute to a more complete use of restructuring methods by banks, as well as reduce regulatory obstacles to financial restructuring," it said.
As UNIAN reported earlier, draft law No. 1070 on streamlining the financial restructuring procedure was registered in the Verkhovna Rada on August 29. Ukrainian President Volodymyr Zelensky designated it as a priority one.