Legislative support of the resumption of lending

Abstract

The article is dedicated to the research of legal support of the resumption of lending. Based on a conducted systematic analysis of current legislation and special sources, it is argued that the presence of a significant amount in banks is a significant obstacle to the development and reduction of cost of lending in Ukraine are the presence of a significant amount of non-performing loans from banks that are caused by low solvency of the population, a high level of real (effective) interest rates on loans, a high credit risk, numerous conflicts of legislation, certain provisions of the tax legislation. The article emphasizes that the existence of problem loans requires banks to create significant reserves for their coverage, limiting the amount of funds directed to lending, and significantly increases the bank's credit risk (CR). The article contains such ways of settling non-performing loans as restructuring of problem debts and/or partial forgiveness (write-off) of the debt, sale of debt with a discount (below their nominal value), foreclosure collateral (including mortgage), appeal to court with claims for debt collection under loan agreements, initiation of bankruptcy of the debtor, etc. The author considers the main directions of activity on the resumption of lending and acts of active and promising legislation aimed at settlement of debts. Author has been analyzed such acts of Parliament as the law on financial restructuring, which is conducted without court trial through negotiations between the debtor and creditors on the restructuring of monetary obligations to them, the law on the creation and maintenance of the Credit Register, which will help to avoid issuing loans to people with a negative credit history in the future, the law on the resumption of lending which aimed at protecting the interests of the banking sector (creditors) from unconscientious borrowers, as a result of what most of the common loopholes for unscrupulous borrowers can be closed Also considered bills on settling arreas and debt management, the adoption of which will significantly reduce the level of the problem debt.