The law on financial restructuring, regulating the procedure for restructuring operating businesses` debts owed to banks, the adoption of which allows Ukraine to fulfill its obligations outlined in the Memorandum of Cooperation with the International Monetary Fund (IMF), will become effective on October 19, 2016, three months after its publication.
The law stipulates that its provisions will remain in force for three years from the date the document comes into effect until October 19, 2019.
As UNIAN reported earlier, the bill, adopted by the Ukrainian parliament last month, has been drafted by representatives of the country`s Finance Ministry, the National Bank of Ukraine, the Independent Association of Ukrainian Banks, the European Bank for Reconstruction and Development, and the World Bank.
The law has been framed to help deal with the implications of the crisis in Ukraine and seeks to facilitate economic growth in the country by providing for the possibility of reciprocal out-of-court voluntary restructuring procedures, as stipulated in the Memorandum with the IMF, according to reports.
According to experts` estimates, corporate debts that will fall within the scope of the proposed mechanism may total UAH200 billion.
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