The restructuring of foreign currency loans will destroy the financial system - NBU

3 July 2015 11:35  24102554 0103576
The restructuring of foreign currency loans will destroy the financial system - NBU

This is stated in the statement of the regulator.

"The prohibition of the state and the National Bank interference with the negotiations between borrowers and banks on restructuring of foreign currency loans is fixed by the Memorandum of Economic and Financial Policies, concluded in the framework of cooperation with the IMF," - it said in the statement.

Thus, according to the Memorandum: "The state and the National Bank should not intervene in the bilateral negotiations between borrowers and banks, apart from ensuring a fair process. In this regard, if a law, that would require the forced conversion of foreign currency mortgage loans into hryvnia, is adopted, the President will veto this law."

The adoption of the bill 1558-1 will be destructive to the financial and banking system. Because it proposes to oblige banks to convert all consumer loans in foreign currency at the rate in force at the time of the contract conclusion (around 5.05 UAH / USD). It will threaten not only the stability of the banking system, but also the well-being of all citizens, it said in the statement.

The implementation of those provisions will lead to the banking system inability to comply with compulsory capital ratios, leading to the need for immediate capitalization of the banking system, including that by the state through refinancing - and this is a significant additional burden on the state budget.

Those innovations will lead to massive insolvency of banks, increased spending from the Deposit Guarantee Fund.

As you know, the Parliament with 229 votes approved in the final third reading the bill №1558-1 on restructuring of liabilities on loans in foreign currency at the rate in force at the time of receipt.

The first deputy head of the parliamentary faction "Petro Poroshenko Block" Igor Kononenko believes that the President will not sign this law.

Ekonomichna Pravda

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