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Ukraine considers creation of special financial court

Source : 112 Ukraine

The government negotiates with the IMF on this matter
23:38, 2 February 2021

Newly-appointed Chairman of the National Bank of Ukraine Kyrylo Shevchenko
KyryloShevchenko/Website

The National Bank of Ukraine (NBU) negotiates with the IMF in terms of the creation of a specialized court for settling the controversies regarding the non-performing loans (NPL). Kyrylo Shevchenko, the Head of the National Bank, told that Reuters.

"We are currently discussing the creation of specialized court or a court chamber that would be considering issues among creditors and borrowers, as well as between investors and those receiving investments", Shevchenko said.

The court will be considering controversies regarding the banking loans in order to halt the growth of undisbursed loans.

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Besides, the authority is supposed to improve the protection of creditors, which are otherwise currently unable to get their money back - under the incumbent court system. This would help the creditors cut the share of undisbursed loans from 42 to 24 percent until 2023. According to Shevchenko, the shortage of undisbursed loans could involve new foreign private investors to Ukraine. 

"The volume of loans in the banking system makes approximately 40 billion dollars. It's a big sum, and one has to protect it", the head of the NBU said.

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