The law “On financial restructuring” foresees 3 years of legal enforcement for corporate loans worth USD 8bn, as subjects to restructuring in local banks. There is also an option for further prolongation of the force of law. During this period, borrowers among legal entities of Ukraine may settle and arrange payments with banks in non-judicial processes. The participants of the program can become economically viable companies including municipal enterprises and other state owned companies. Prior audits of the companies will be held assessing business viability to paying debts. In so doing, the government expects to normalize business operational processes at companies having trouble to pay off loans and help them in gaining access to working capital.
The Rise of Corporate Loan Business in CEE
Galnaftogaz raised $35 mln loan from IFC
