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Ukrainian government proposes to increase protection of creditors, says bill

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July 31, 2012, 11:47 a.m. | Business — by Interfax-Ukraine

The Ukrainian government has proposed that parliament increase the protection of creditors when credit agreements are declared invalid.
© AFP

The Ukrainian government has proposed that parliament increase the protection of creditors when credit agreements are declared invalid.

The relevant draft law (No. 11029) has been registered in parliament: the document proposes to amend the Economic and Economic Procedural codes.

"When declaring a credit agreement invalid, which secures the fulfillment of liabilities of borrowers with his property or the bail property, the court under a claim of creditors arrests the property. The arrested property can be released if within 30 days of the moment of the taking effect of the court ruling on declaring the credit agreement invalid, the sum determined by the court is returned," reads the draft law, which has been posted on the Web site of the Ukrainian parliament.

According to the document, if the liability is not fulfilled in the said term, creditors have the right to appeal to the courts asking for the arrest of the property.

"The adoption of the draft will increase Ukraine's investment attractiveness, give a boost to crediting, create new jobs, and increase the production of domestic products," reads an explanatory note to the draft.

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