Photo from UNIAN
The Cabinet of Ministers will submit a bill for consideration of the Ukrainian parliament in the near future providing a mechanism for restructuring non-performing bank loans of businesses without court's involvement, Deputy Finance Minister Artem Shevalev said at a business forum in Kyiv yesterday, November 12.
"The bill on financial restructuring is at its final stage of preparation. We expect that it will be approved by the Cabinet [of Ministers] and submitted to the parliament in the coming weeks," the deputy minister said.
According to Shevalev, the bill has incorporated the best global practices in resolving the issue with non-performing bank loans of businesses.
"This system is internationally tested. This system has been developed based on London and Istanbul models of approach [to the problem], which allows both the banks, and the borrowers to reach an agreement on restructuring," Shevalev said.
Read alsoUkraine official names conditions for Ukraine to advance in World Bank's Ease of Doing Business rankingAs UNIAN reported earlier, arrears of businesses to banks currently account for 17% of total banks' loans.
Ukraine may introduce the mechanism providing for a voluntary restructuring of non-performing bank loans of businesses with the aim to facilitate business operations and stimulate lending. It is expected that the mechanism will be put in place during the next three years.
A draft law "On financial restructuring" that has been developed by the Ministry of Finance and the National Bank of Ukraine envisages a possibility to review the loan repayment period, interest rates under such loan and other terms of the loan agreement as part of the restructuring. The bill also ensures provision of new funding, investment in capital, as well as the reorganization of debtor's activities.