Ukrainian President Petro Poroshenko has signed a bill on financial restructuring which will introduce a mechanism of the voluntary financial restructuring of debtor enterprises with a view to resolving the situation with problem loans and resuming lending to the economy by banks, the website of the Verkhovna Rada reported.
The Ukrainian parliament passed bill No. 3555 on financial restructuring at second reading on June 14, 2016.
The bill was drawn up by the Finance Ministry jointly with the National Bank of Ukraine (NBU), the Independent Association of Banks of Ukraine (NABU), the European Bank for Reconstruction and Development (EBRD) and World Bank. It is a benchmark in the Extended Fund Facility (EFF) program financed by the International Monetary Fund (IMF).
The Finance Ministry said that the bill is an important tool for settling the situation with troubled loans of banks. It will help to revitalize the banking system, restore solvency of companies and retain jobs. Banks will be able to reduce the volume of troubled loans and send funds to credit the economy.
The NBU recalled that financial restructuring foresees the revision of the payment terms, interest rates and the provision of a new loan to the debtors and haircut of a part of the debts.
