The Ministry of Finance urges the Parliament to adopt the draft Law “On financial restructuring” which is aimed to revitalize business activity and to resume loan supply by banks in Ukraine.The Ministry of Finance is actively working on the recovery of the public financial system and stabilization of the banking sector. These steps are aimed at Ukraine’s economic growth.
The Ministry of Finance is taking resolute steps to solve structural economic and financial issues in Ukraine. The draft Law of Ukraine “On financial restructuring” was elaborated by the Ministry of Finance jointly with the National Bank and the Independent Association of Banks of Ukraine (NABU) in compliance with best international practices.
The Draft Law shall lay solid ground to settle the debt burden on Ukrainian companies which are temporarily unable to re-pay their debts.
“The approach used in this draft law makes it possible for companies with an effective and potentially successful business model to settle their debts, to avoid bankruptcy and thus to return to growth”, Minister of Finance Natalie Jaresko said.
The Minister of Finance also emphasized that the draft law is not to be seen as a mechanism meant to escape payments on the loans: companies which are not viable won’t be able to use it. To prevent misuse or manipulation of the financial restructuring process, the affiliated entities of debtors won’t have a possibility to influence it. Also, the financial restructuring procedure is voluntary; companies are not obliged to participate in it. The procedure is only possible with the consent of all parties involved and under terms and conditions that satisfy each party.
“The efficient financial restructuring procedure for companies will help to resume business activity of viable companies, speed up the “recovery” of the real economy and financial sector which in turn will help to save the existing and create new jobs», the Ministry of Finance stressed.