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09:51
RADA PASSES LAW TO SET UP FINANCIAL READJUSTMENT BANK

Kyiv, July 24 (Interfax-Ukraine) – The Verkhovna Rada, Ukraine's parliament, has passed a bill on additional measures to help Ukrainian banks recover financially, among which is the creation of a financial readjustment bank.

The bill on amendments to banking laws (No. 4630) was supported by 322 MPs on Friday.

The International Monetary Fund has recommended that additional measures be taken to help Ukrainian banks recover.

During the discussion of the bill, First Deputy Chairman of the Verkhovna Rada's committee on finance and banking Stanislav Arzhevitin (the Our Ukraine-People's Self-Defense faction) said that the parliament's scientific and expert department points out that some clauses of the bill are not in line with the constitution.

As reported, the adoption by lawmakers of two bills – on the simplification of the bank financial recovery procedure and on the enhancement of the independence of the National Bank of Ukraine – are preconditions for the allocation of a third tranche under the International Monetary Fund's Stand-by Arrangement.

Earlier, the government planned to stipulate in a bill amending banking legislation the following provisions: the simplified bank reorganization regulations, a reduction in banks' charter capital during the implementation of the financial recovery plan, as well as the determination of the peculiarities of the moratorium on meeting creditors' claims.

Moreover, the bill foresaw that the moratorium on the taxation of individuals' deposits at banking and non-banking establishments should be prolonged until January 1, 2013.

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