Rada rejects bill on restoring trust between borrowers and creditors

The Verkhovna Rada has rejected a bill on amending some Ukrainian laws regarding the restoration of trust between borrowers and creditors (No. 2286-a). The document provided measures to settle flaws in earlier legislation used by debtors to avoid the fulfillment of their liabilities under credits.

The bill is intended to improve the legal regulation of bankruptcy procedures and reinforce the protection of rights of creditors in these procedures, as well as to minimize risks of using managed bankruptcy schemes and targeted sales of property of bankrupt companies to concrete persons at low prices. The document also aimed at protecting ownership rights of creditors under security agreements and regulations on inheritance.

Adoption of the measure is included in the memorandum on the economic and financial policy signed with the International Monetary Fund (IMF).