Over the last three and a half years, the National Bank of Ukraine has made a great many decisions removing insolvent banks from the market. This, in turn, has given rise to the disputes in which clients of banks seek the recovery of their funds (deposits, working assets) that have been trapped in their bank accounts. However, considering the restrictions applicable during the establishment of provisional administration/liquidation of banks, not everyone, and not always, succeeds in achieving the desired result.

Draft Law No. 3555 “On Financial Restructuring” (the “Restructuring Law”) aimed at creating effective mechanisms for voluntary financial restructuring of Ukrainian companies’ debts (the “Voluntary Restructuring”). The Restructuring Law is adopted as a temporary measure and will be in effect for three years. The Government expects that the Restructuring Law will result in reducing the amount of bad loans and restoring bank lending.

The main novelties of the Restructuring Law are as follows: