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Thursday, August 24, 2017

NBU governor slams veto of debt-pursuit amendments

During a speech to Ukraine's Legislature, the Verkhovna Rada, National Bank of Ukraine Governor (NBU) Valeriia Gontareva criticized the veto of amendments on Thursday that would allow creditors to satisfy legal claims.

Currently, a moratorium is in place that prevents lenders from repossessing or foreclosing on Ukrainian citizens' property as collateral for debts. She called on Ukrainian President Petro Poroshenko and others in the government to pursue a comprehensive solution.

“This approach is unacceptable, as it only defers the solution of problems faced by foreign-exchange borrowers for an indefinite period of time, which means leaving them alone to fight a debt burden rising at a fast pace," Gontareva said in her speech.

The NBU governor also said the proposed amendments facilitate an open dialogue between lenders and borrowers, allowing for the restructuring of foreign-exchange loans. This proposal is also backed by the International Monetary Fund.

Parliament subsequently voted against overriding Poroshenko's veto, Interfax-Ukraine said.

Organizations in this story

International Monetary Fund 700 19th Street, N.W., Washington, D.C. - 20431

National Bank of Ukraine 9 Instytutska St., Kyiv 01601

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