Conversion of individuals' foreign currency loans at a reduced rate may cost UAH 95 billion / Photo from UNIAN
Ukrainian Finance Minister Natalie Jaresko describes the adoption of a draft law on restructuring of foreign currency loans by the Verkhovna Rada as a "challenge to fairness in Ukraine."
"Today, the government is working hard to raise the level of fairness in our society. However, this law does not contribute to this. <...> For some reason, the lawmakers decided to take care of the interests of only a very small share of borrowers who have taken loans in foreign currency," the minister said.
Such a step could cause a loss of UAH 95 billion to the banking system of Ukraine. It is more than expenses on the defense sector and law enforcement in 2015, according to the minister.
This bill will lead to deterioration in the banking system, new bankruptcies, loss of bank deposits by citizens who are not at fault.
"This is populism, which has nothing to do with fairness," Jaresko wrote.
Сьогодні Верховна Рада України ухвалила проект закону 1558-1, що зобов'язує банки реструктуризувати усі споживчі кредити...
Posted by Наталія Енн Яресько / Natalie Ann Jaresko on 2 Июль 2015 г.
As UNIAN reported, the Verkhovna Rada at the second attempt passed a bill on July 2, which will make banks convert individuals' foreign currency loans at a reduced rate of UAH 5.05 to $1 at borrowers' request.