11:13 28.01.2016

Parliament repeals bill on restructuring currency-pegged credits

2 min read
Parliament repeals bill on restructuring currency-pegged credits

The Ukrainian parliament has failed to back bill No. 1558-1 vetoed by Ukrainian President Petro Poroshenko. The bill envisages restructuring all consumer credits issued in foreign currency at the exchange rate of UAH 5.05/$1.

A total of 101 lawmakers supported the proposal.

The lawmakers also failed to override the president's veto – only 54 MPs backed the proposal. Thus, the bill is considered repealed.

President's envoy to parliament Stepan Kubiv said in the parliament that the bill could have affected the banking system.

"The scheme to restructure liabilities proposed in the bill would considerably shatter the balance of rights of the credit agreements' parties in favor of borrowers, putting the whole burden of losses only on the Ukrainian banking system, which would entail the urgent additional capitalization of the banking system, refinancing, devaluation of the national currency, the increase of expenses of the Individuals' Deposit Guarantee Fund and the increase of expenses of the national budget, it would also introduce the unequal approach to the borrowers who have paid on their credit liabilities at the new exchange rate and those borrowers who did not have a possibility of fulfilling the conditions of their credit agreements or were unfair borrowers," he said.

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