The Verkhovna Rada has passed the Law On Financial Restructuring (draft law № 3555), UBR reports.
In compliance with provisions of the Law the issues of debt load on Ukrainian enterprises, which have temporary problems with due repayment of loans to lenders, will be solved. The rescheduling of loan repayment, the amount of interest rates, the writing-off of partial debt, obtaining new funding will be simplified as well.
In addition, the Law stipulates the conditions for providing tax incentives for debtor enterprises, which have already been determined by the NCU, in particular, regarding exemption from profit tax obligations, arising out of partial debt forgiveness by lenders. In the meantime, it will be impossible to avoid loan repayment.
The associated persons of the debtor enterprise will be deprived of the possibility to influence the process of financial restructuring.
In addition, the procedure of financial restructuring stipulates the voluntary, but not mandatory participation of enterprises. It will be conducted upon the consent of all parties and on the terms, which should satisfy all participants.
The Law On Financial Restructuring has a limited effective period – three years from the effective date. Such period will allow evaluating the success of conducting the procedure of financial restructuring in Ukraine and compare results with experience of other countries. In case of obtaining positive results the effective period of law may be extended.
