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MEDT of Ukraine ratified a grant agreement between the EBRD and NABU (auto-translate)

The grant agreement is concluded for three years, and provided over this period the funds will be spent on the implementation of the Law "On financial restructuring"

Independent Association of banks of Ukraine and the European Bank for Reconstruction and Development joined forces to create the conditions for effective implementation of the mechanism of financial restructuring in Ukraine. Concluded between the grant agreement provides for the establishment of the Secretariat and the Arbitration Committee, as well as strengthening the capacities of their representatives and arbitrators: support in the development of new administrative framework of the Law on financial restructuring in Ukraine.

"The dynamics of NPL growth that we see from 2014, disappointing and becomes threatening momentum. So NABOO unhesitatingly supported the idea of introduction of mechanism of financial restructuring in Ukraine, taking part in the work on drafting the bill, and now its implementation", - says the Executive Director of the NABU Elena Korobkova. – "However, without proper funding mechanism would not have the chance to make money. NABOO on their own were able to cover no more than 25% of the required amount. We are therefore very pleased that the EBRD, our long-standing partners and friends have agreed to allocate the necessary funds to the financial restructuring earned full".

According to official statistics the NBU, the amount of non-performing loans at the beginning of this year (01.01.2017) was $ 276 billion. or 26.7% of the total loan portfolio, corresponding to 11, 6% of GDP. Although last summer, when adopting the Law On financial restructuring, this amount was significantly less 260 billion UAH or 23.5% of the loan portfolio in the system. And two years ago, this amount covered only 8% of the loan portfolio.


Help:

The mechanism of the financial restructuring will help maintain the stability of the financial system by recovery companies who are in a critical financial position.

The procedure of financial restructuring is conducted out of court by negotiation between the debtor brought by creditors and investors.

To initiate the procedure of financial restructuring, the debtor can submit written application to the Secretariat of the administrative body which carries out technical support of the procedure. During the voluntary financial restructuring may be revised terms of repayment, size of interest rates or other conditions of the loan agreement.

Preparation of a draft Law "On financial restructuring" was carried out in the framework of the joint project of the EBRD and the World Bank. It is directly related to changes in the Tax code of Ukraine provides tax incentives for participants of the restructuring procedure. Such benefits will remain in force for three years.

All necessary information concerning the use of the mechanism of financial restructuring and filing can be found on the official website Secretarty: www.fr.org.ua
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.