Purpose. The project aims to provide technical support to the Independent Association of the Banks of Ukraine in establishing a secretariat and an arbitration committee, build the capacity of the secretariat’s and the committee’s representatives and arbitrators, support the development of a new administrative base for the Law On Financial Restructuring in Ukraine, promote an increase in out-of-court restructurings, while also making the new regulatory framework more effective, and enhance financial sector’s resilience to challenges, as defined in paragraph 3 of the Strategic Direction I Financial Stability of the Strategy of Ukrainian Financial Sector Development until 2025, approved by NBU Board Decision No. 1010 dated 26 December 2019 (as amended).
The project provides expert assistance in streamlining the financial restructuring procedure. Consultations have been held with financial market participants, and the respective amendments have been made to the Law of Ukraine On Financial Restructuring. The largest creditors that most actively used the restructuring procedure include the following three state-owned banks: Oschadbank JSC, Ukreximbank JSC, and Ukrgasbank JSB.
Products implemented for the NBU, and key events:
- measures were taken to provide information about the extension of the validity of the Law On Financial Restructuring (publications on the NBU’s official website, participation in public events, and the preparation of information and reports regarding the organization and carrying out of financial restructuring procedures for Supervisory Board members, as well as for members of the Parliamentary Committee on Financial, Tax, and Customs Policies).
- banks were given the right to restructure their nonperforming exposures with a view to decreasing these exposures
- implementation of financial restructuring procedures continues(a total of 63 procedures were performed for a total amount of UAH 81,024,618,071).