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How Bankruptcy Code Will Increase Its Efficiency

Monday, 26 November 2018 16:16

The Independent Association of Banks of Ukraine told about main advantages of a new bankruptcy code.

The Bankruptcy Code of Ukraine is a huge step forward for the country’s economy, Chairman of NABU Council Roman Shpek said during IV Forum on Competition Law, organized by the Association of Lawyers of Ukraine jointly with EU Project “PRAVO-Justice”, as reported on the official website of NABU in Facebook. He noted: “The lending and attracting foreign investments was renewed, of course, with active involvement of the banking society”.

The code is aimed at protecting the rights of lenders as well as protecting the rights of debtors – the procedure of pretrial sanation was amended, the individuals’ bankruptcy institution was introduced that will allow all citizens of our country, who found themselves in difficult situation, overcome temporary financial difficulties. Now, the individual debtor can initiate the bankruptcy procedure, during which he should prove his decency – submit declarations where he should honestly show his financial standing, his and his family’s.

The court and the independent professional individual – the bankruptcy commissioner – are expected to participate and help the debtor and lenders to find a balanced way of solving this issue. There is no doubt that the Code was developed for enhancing efficiency of bankruptcy procedures, considering the higher number of outstanding liabilities of debtors, duration and non-transparency of existing procedures. Namely such complex approach to settling the economic problem of the massive nonrepayment of debts has public and economic significance. However, even the ideal Code can be distorted by the regulatory acts and the biased judicial practice. Therefore, the main task of legal and economic community is to achieve that the novelties, contained in the Code, created proper, legal, economically feasible tool for debtor’s recovery from the financial crisis. And the main thing is to continue system reforms and unshadow the market”.

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