The head of the NBU Valery Gontareva said that the National Bank would apply to the courts of all necessary jurisdictions to implement personal guarantees of owners of insolvent banks that received stabilization loans.
In this regard it is also interesting what are the chances of the Deposit Guarantee Fund to receive compensation from the beneficiaries of banks and their companies.
Chances are really high. Provided that such a person is proven guilty of causing damage to the bank or its creditors.
As settlement in relation to Ukraine’s successful sovereign exchange offers is expected today, we explain why this sovereign deal is groundbreaking.
Background: The Exchange Offers
On 22 September 2015, Ukraine launched Exchange Offers in relation to the following (Old Notes):
В течение последних двух лет Украина пережила существенные политические и экономические потрясения, что очень повлияло на финансовую и банковскую системы нашего государства. Как следствие на сегодняшний день процедура ликвидации применена к 65 банкам. Каждый должник должен понимать, что введение временной администрации или процедуры ликвидации банка не является спасением от взыскания с него задолженности, ведь банки, в отношении которых применяются данные процедуры, любым способом будут стараться вернуть денежные средства, за счет которых осуществлялось кредитование.
On 22 September 2011, the Parliament of Ukraine adopted Law of Ukraine No. 3795-VI “On Amendments to Several Legislative Acts of Ukraine regarding Regulation of Legal Relations between Creditors and Receivers of Financial Services” (the “Law”). The Law became effective on 16 October 2011. Although the positive impact of certain amendments is rather ambiguous at this stage, the Law is likely to reduce risks in the financial system.
The major amendments envisaged by the Law cover the following key areas:
Loans and security
Starting from 22 September 2012, the beneficial owners (aka controllers), substantial shareholders, and senior executive officers of Ukrainian commercial banks could face personal financial liability for the insolvency of banks during liquidation.
The New UAE Netting Law
Netting is a standard mechanism used in banking and financial markets for the settlement and payment of competing rights or interests between counterparties. This occurs through an agreed process of termination and evaluation of such rights or interests and consolidation to one single (or ‘net’) payment from one party to another, minimising the overall credit and settlement risk.
It has been a busy time for legislators in the United Arab Emirates (“UAE”), with the introduction of many new laws and regulations which impact the financial services industry.
This article looks back on recent developments and attempts to predict what else may be enacted during 2017.
Centre for Amicable Settlement of Disputes
I. Key facts
What are the key facts on doing business in the UAE?
When considering doing business in a foreign jurisdiction, an investor must consider a wide range of commercial, political and capital security issues that will impact the final decision of investing in a particular country.
Over the last two decades the United Arab Emirates have proven itself to be a very attractive hub for investors to locate their business for many reasons, below are just a few of them:
Saudi Arabia recently published a new Bankruptcy Law. This is the latest development of a string of reforms under Vision 2030 to further encourage the participation of foreign and domestic investors by structuring the business legal framework. This article provides a general analysis of the new bankruptcy law and its implications for businesses operating in the Kingdom.
In our previous two briefings on the Bankruptcy Law, we have looked at a summary of the key changes made by the Law, and the potential personal liability faced by directors of UAE companies in financial difficulty. In this briefing, we turn to creditor protection.