Policy Progress: Parliament gives green light to financial restructuring of debts of enterprises

The Chamber welcomes adoption of Draft Law #3555 “On Financial Restructuring” by the Verkhovna Rada of Ukraine (VRU) which facilitates the creation of mechanism for voluntary financial restructuring of debts of enterprises as  foreseen in the Memorandum of Cooperation between Ukraine and the International Monetary Fund and which is one of the goals of the Comprehensive Program of Ukraine's Financial Sector by 2020.  Financial restructuring of debts of enterprises would allow banks to reduce the amount of bad loans as well as to direct funds to restart lending and stimulate the economy. In addition, companies will avoid the risk of bankruptcy and have the chance to become solvent again.

Over the last year the Chamber has been actively advocating for creation a mechanism that would allow to restructure the debts through the constant dialog with the management of responsible governmental bodies and expressing the position of business community on this issue. We consider that this development could have a positive impact on business activities of companies and give a positive signal to foreign investors. At the same time, there are still a number of steps to be taken on the way to fully restart lending on the market and stimulate of economy. The Chamber will take necessary efforts for achieving mentioned steps and ensuring their effective implementation.