The National Bank of Ukraine (NBU) approved a procedure for imposing sanctions against banks for violations of the law on financial restructuring, according to regulator`s resolution No. 392 dated October 13, 2016.
An application to impose sanctions on banks may be filed by debtors or by the supervisory board, the secretariat or the arbitration committee, which are set up under the law. Such application shall include a description of the violation, as well as copies of supporting documents.
The final decision concerning the imposition of sanctions shall be made by NBU`s Committee on Banking Regulation and Supervision and Oversight of Payment Systems. The NBU will take the decision within 30 calendar days upon the receipt of all the documents from the initiator.
According to the procedure, the bank concerned shall notify the NBU in writing within five business days from the date of payment of the fine, and provide a copy of the document confirming the payment. In case of bank`s failure to pay the fine, the NBU shall apply to the court to recover the required amount of fine.
As UNIAN reported earlier, in June 2016, the Verkhovna Rada of Ukraine adopted the law on financial restructuring, which was developed jointly by MPs, representatives of the Finance Ministry, the NBU, the World Bank, and the European Bank for Reconstruction and Development.
The document has been developed to overcome the effects of the crisis in Ukraine and is believed to contribute to economic growth in the country through the mechanisms of reciprocal voluntary restructuring of operating businesses` debts owed to banks. This provision is stipulated by the Memorandum signed with the International Monetary Fund.
According to experts` estimates, corporate debts that would fall within the scope of the proposed mechanism may total UAH 200 billion.
