Prospects of crediting restoration in Ukraine

Abstract

In the article the author focuses on crediting as an important economic category in terms of society functioning. The reproductive processes stimulation in the economy is allocated to a bank loans. Bank loans are the most common form of lending to existing business entities and households. The analysis of reforms initiated by the NBU and their influence on the current state of the banking sector in the country was carried out. The quantitative and qualitative characteristics of Ukraine’s banking system loan portfolio were presented and analyzed. Attention is drawn to a certain contradiction in the actions of the NBU - when during the period under study on the one hand, the central bank carries out measures aimed at reducing interest rates, and, on the other - increases the level of the discount rate and gives banks the right to change the interest rate during the term of the loan agreement. The author analyzed the draft Law "On Amendments to Certain Legislative Acts of Ukraine Regarding Restoration of Crediting", which aims at the fostering of cooperation among creditors and borrowers for the restoration of full-fledged lending in the banking sector. The bill suggests a series of complex changes in a number of laws and regulations concerning the pledge, mortgage, notary, civil code. Important points of the bill are the definition of the category "social debtor" and assertion on the liability for obligations. The analyzed draft law also regulates work with the heirs, mortgage, transfer of the mortgage ownership, a notary. Fundamental changes are envisaged in the work of banks with state registries. Special attention is drawn to the need to reduce the cost of credit resources and to the importance of liberalizing banks’ requirements to potential borrowers for further development of the credit market in the country. The purpose of the law is to stimulate the restoration of the credit market objects and subjects сoperation. The conclusion generally emphasizes Ukraine’s banking sector readiness to resume business entities and households crediting in the country.