The Ministry of Finance welcomes the successful first-reading vote on the draft law which shall contribute to the resumption of economic activity and revival of loan supply by banks and asks to adopt it

3/31/16

Today, the Parliament has approved the draft Law “On financial restructuring” which was elaborated by the Ministry of Finance jointly with the National Bank of Ukraine and the Ukrainian Banks Association. The Ministry of Finance welcomes the successful vote in the first reading and asks the members of Parliament to adopt it.

The Ministry of Finance is actively working to recover the public financial system and to stabilize the banking sector with the aim to resume economic growth in Ukraine. It is taking resolute steps to solve structural economic and financial problems.

The draft Law “On financial restructuring” was elaborated on the basis of best international practices with the aim to resume economic activity and enhance loan supply by banks which can lay ground for the sustainable economic development of Ukraine. The draft law is meant to effectively settle the debt burden on Ukrainian companies which are temporarily unable to serve their debts on time.

“The approach pursued in this draft law shall enable companies with an efficient and potentially successful business model to settle their solvency issues, to avoid bankruptcy and thus get back to growth”, Minister of Finance Natalie Jaresko said.

At the same time, as the Minister of Finance pointed out, the draft law is not to be understood as a mechanism to evade debts: companies which can’t survive won’t be able to use it. To prevent misuse or manipulation in the financial restructuring process, the affiliated entities of a debtor won’t be able to influence it. Also, the financial restructuring procedure is voluntary and not binding for companies. It can take place only with the consent of all parties and at terms which are suitable for all of them.

“The set-up of an efficient financial restructuring procedure for companies will help resume the economic activity of viable businesses and speed-up the recovery of the real economy and the financial sector which shall contribute to keeping the existing and creating new jobs”, the Minister of Finance pointed out.

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