Real tools of actual non-performing loans regulation are to be implemented in order to relaunch real economy lending. This was announced during the round table dedicated to the discussion of the draft law № 3555 «About financial restructuring» benefits and disadvantages which took place at Independent Banking Association this week. Representatives of National Bank of Ukraine, Ministry of Finance, banking circles and National Council of Reforms project office have participated in this discussion.
«This law will provide everybody with the possibility to work under equal conditions and cope successfully the complicated relationship between a borrower and his creditors. All the banks, companies and government bear losses during the crisis. And fair and proportional assignment of these debt burden is very important», – Sergey Naumov underlined during the discussion.
The speakers agreed, that the most appropriate way from debt dead end for viable companies and financial institutions is debt restructuring, which could be realized in particular through a loan return and interest payment postponement, writing off the part of a loan, assets transfer.
As it was highlighted during the meeting such restructuring systems with a few financial creditors had been already set up. Among successful examples are London, Istanbul, Budapest approach and others. Within these systems creditors together limit their activities on debt collecting while a borrower receives the opportunity for financial recovery. This helps creditors to stop competition and focus on the common purpose — a borrower business resumption and non-performing loans return.
According to S. Naumov words, if this law project had been admitted in Ukraine 7 years ago, our banking system would have not kept so big non-performing loans today. So the faster this law inures, the bigger number of companies will be able to resume their business.
On July 21st, 2022, the National Bank of Ukraine introduced changes on the transactions and operations carried out abroad (outside of the territory of Ukraine) on Hryvnia (UAH) cards and accounts. Those new limitations are only related to operations, carried out abroad from UAH cards and accounts, whilst foreign currency cards and accounts have not been impacted from those restrictions. In detail:
UAH12.500 equivalent in foreign currency per 7 days from the first time of withdrawal. The limit is not calculated cumulatively.
UAH80.000 equivalent per calendar month for transactions at POS terminals (physical presence of card or NFC technology on phone), purchases on the internet secured by full 3DSecure* and recurring payments**.
UAH20.000 equivalent per calendar month for the rest type of online transactions.