News date: 30 September 2016
Oleksandr Vygovskyy, attorney at law at Ilyashev & Partners Law Firm, participated in developing the concept of amendments to the Ukrainian legislation on factoring, leasing and debt management, including bad debts of banks.
The draft concept, initiated by the European Bank for Reconstruction and Development (EBRD), was prepared by the working group in the National Bank of Ukraine (NBU) in September 2016 with participation of the representatives of the EBRD, the NBU, the National Commission for Regulation of Financial Services Markets and representatives of public authorities, international financial institutions, the leading law firms of Ukraine, banking, factoring, collection and leasing associations. The working group also drew up the draft Law of Ukraine “On Amendments to Some Legislative Acts of Ukraine (on Improvement of Work with the Rights of Claim and Bad Debts for Renewal and Revitalization of Lending)” and the draft Law of Ukraine “On Amendments to the Tax Code of Ukraine Regarding Improvement of Taxation of Factoring Transactions and Assignment of Claims (Cession)”.
“The main objective of the proposed amendments to the legislation is reforming approaches to the provision of factoring and leasing services in Ukraine and creation of effective mechanism for dealing with bad debts, including work with troubled loans, − said Oleksandr Vygovskyy. − To date, the share of such loans in Ukraine is 24.1% of the total amount of loans granted by commercial banks, which is 2-2.5 times higher than the norm, even for developing countries”.
The abovementioned draft laws are the next step towards solution of the issue with troubled assets of banks after adoption of the Law of Ukraine “On Financial Restructuring” that will become effective on October 19, 2016. Previously, Ilyashev & Partners Law Firm participated actively in drawing up and discussion of the draft Law of Ukraine “On Financial Restructuring” aimed at resolving the situation in the financial services market.
Ilyashev & Partners Law Firm supports development and improvement of the Ukrainian legislation and law enforcement practice in key areas of legal regulation and implementation of consistent reforms in the country.