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Irene Wise: "Financial restructuring to be, who wouldn

Irina Mudra, member of the Supervisory Board, the Deputy Director of the Department of restructuring and recovery of the Bank.

The subject of financial restructuring does not cease to be one of the key discussion among the bankers, financiers, lawyers, representatives of the business environment. The topic is complicated, and hence the discussion does not go beyond the expert field. But we should not forget that the consequences of implementing or not implementing will be felt for the economy and, finally, for every citizen.

The financial restructuring will provide an opportunity for viable debtor to restore its solvency in a relatively short time – and it is a real enterprise with thousands of jobs. It will provide lenders, primarily banks the opportunity to settle debt and reduce problematic loan portfolio, up considerable resource, disbanding the reserves. Therefore, objectively banking institutions are interested in resolving the issue of financial restructuring at the national level not less than the debtors.

With the adoption of the Law, banks were legislated effective mechanisms for the implementation of effective financial restructuring. The use of tools such as setting interest rates at a level below the cost of raising funds, a complete cessation of accrual of interest, forgiveness of debt, transfer of the debtor's obligations to the capital or to attract new investments in capital, the reorganization of the debtor, change of management and/or members of bodies of management and control of the debtor in the manner provided by Law, amendments to the corporate governance structure of the debtor, and the like – all of this can now occur without the risk of recognition by Supervisory authorities of the Bank's activities are unprofitable. And the obligation to obtain a qualified, independent report of inspection of economic activities, which will fix the objective conditions necessary for restructuring, and which will benefit creditors in making decisions, minimizing the risk of charges of participants of the restructuring of bias and bad faith. Separately it should be noted positive changes in regulatory calculations of banks credit risks and tax laws that are made pursuant to the requirements of the adopted Law.

Following the best foreign experience in implementing similar programs, visokopillya team that participated in the development of the Law, created a normative document, which in the end, instead of finding the perpetrators gave the answer to the question "what?" and determined driven and organized approach to cooperation between lenders and borrowers, as well as equal conditions for both parties during the implementation of restructuring of financial debt.

Of course, there are different opinions regarding the Law of Ukraine "On financial restructuring" and its implementation. But now we need to focus on the need to solve urgent issue. One thing is clear – financial restructuring to be, who wouldn't be against it.

Today actively works created in execution of the law of Ukraine "On financial restructuring" of the Supervisory Council, which performs not only the function of coordinator of the organization and the procedure of financial restructuring, and in fact is the body that implements the rules of Law in life. Have been five meetings of the Supervisory Board, which adopted many of the key decisions on the implementation of the Law, including the decision on the establishment of the Secretariat of the Independent Association of Ukrainian banks (NABU), the process of the formation of the actual composition of the Secretariat, including with the active participation of representatives of EBRD and consultants of the world Bank.

The Supervisory Board is active between meetings. So, on the implementation of the decisions of the Supervisory Board, with the participation of external lawyers prepared the Arbitration rules, the working group of the Supervisory Council developed the draft documents and model forms necessary for the activities of the Supervisory Board, the Secretariat, the Arbitration Committee and designed to contribute to implementation of the requirements of the Law, worked out a draft document on cooperation with NABU. How fast will begin its work and the Secretariat, respectively, will be launched the first projects for financial restructuring of debtors depends on how quickly will be agreed and approved the procedure of cooperation between the Supervisory Board and the NEB to ensure that the activities of the Secretariat and how quickly the NEB will carry out all of the organizational actions in respect of start of work of the Secretariat.

Of course, there are issues that still need to be addressed. Some of them will require changes in the Law, which is already today prepared for submission to the relevant Committee of the Verkhovna Rada. But they are not as critical to prevent the effective implementation of this long awaited Law.


The project is funded by a grant received from the European Bank for Reconstruction and Development under the Shareholder Special Fund.
The project is implemented by the administrative and financial support of NABU.