In 2014-2018, the National Bank of Ukraine (NBU) initiated 115 legal actions to collect debts of insolvent banks under refinancing loans at the cost of assets of property and financial guarantors. The claims totaled UAH 37 billion.
In particular, these comprise 10 claims against financial guarantors totaling approximately UAH 11 billion and 105 claims against property guarantors totaling UAH 26 billion.
45 court rulings have been already made including 26 enforceable rulings and 19 rulings waiting their enforcement upon expiration of the appeal period.
Currently, 70 more cases are accepted for hearing at various instances including 10 cases on collection of debts from financial guarantors and 60 cases on foreclosures.
“It is too early to say the exact amount the NBU may expect to be discharged from these legal actions as these rulings are currently being appealed to higher courts. In addition, the defendants constantly abuse their due-process rights trying to draw out the repayment of debts. For example, many guarantors initiate bankruptcy proceedings, submit groundless claims, complaints, and notices of motion as well as engage nonresidents which delay repayment of the debts,” said Serhii Boiko, Head of Division of Judicial Work on Distressed Assets of the NBU.
According to Serhii Boiko, today, there are 10 legal actions on bankruptcy of property guarantors.
“However, the NBU reports positive outcomes of the judiciary reform: in the past six months, it was getting harder and harder for debtors to draw out such cases,” Serhii Boiko added.
In 2018, the NBU received UAH 2.6 billion of debt repayment from the sale of collateral pledged against refinancing loans, which is by a half of billion hryvnias more than in 2017.