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Rada OKs restructuring of business debts to banks

Rada OKs restructuring of business debts to banks
31 of March 2016 г.
The Verkhovna Rada of Ukraine has adopted in the first reading a draft law "On financial restructuring," which regulates the procedure for restructuring debts of operating businesses to the banks, an UNIAN correspondent reported.

Deputy Finance Minister of Ukraine Artem Shevalyov noted that the document has been prepared with a view of helping overcome consequences of the crisis in Ukraine, and it is expected to contribute to an economic growth in the country through the mechanisms of voluntary peaceful settlement of bad debts that operating businesses owe to the banks.

In turn, Deputy Chairman of the Parliamentary Committee on Financial Policy and Banking, Ruslan Demchak, said the Committee recommends that the parliament adopt the draft law as a basis and set up an ad hoc group, which would comprise representatives of the Finance Ministry, the Ministry of Justice, and banking associations, tasked with updating the draft before the second reading.

"Implementation of provisions of the draft law will have an unquestionable social and economic impact, as it will help keep jobs and create new ones. Businesses facing a difficult economic situation will see a positive outcome of such initiative. The approach that is set forth in the bill would allow companies with an efficient and potentially successful business model, to remain solvent, avoid bankruptcy and return to a growth path," the MP said.

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