Restructuring of liabilities on loans in foreign currency: what is proposed in the Verkhovna Rada

The Verkhovna Rada decided to help foreign currency borrowers who took out loans in foreign currency and, due to sharp exchange rate fluctuations, faced the impossibility of fulfilling their obligations.

A group of people's deputies registered two draft laws on restructuring liabilities on loans in foreign currency and on adapting insolvency procedures for individuals.

The documents propose appropriate changes to the laws "On the system of guaranteeing deposits of individuals" and the Code of Ukraine on bankruptcy procedures (project No. 4398), as well as to the Tax Code (project No. 4399).

In particular, in accordance with the provisions of the projects, the fund for guaranteeing deposits of individuals will be obliged to offer the borrower to repay the debt in an amount not less than the assessed value of the asset no later than 30 calendar days prior to the publication of the announcement of the open auction. And the borrower in this case has the right to conclude a preliminary agreement with the Fund on the fulfillment of obligations.

Also, housing, which is the only place of residence of the debtor's family, will be excluded from the composition of the liquidation estate of the debtor (despite the current limit of 30 changes of the minimum wage), taking into account the following standards:

- an apartment with a total area of not more than 60 square meters or a living area of not more than 13.65 square meters for each member of the debtor's family, or

- a residential building with a total area of no more than 120 square meters.

If the only creditor in the insolvency procedure of an individual is the secured creditor, and the debtor has no other assets other than an apartment or residential building, which is the only place of residence of the debtor's family and is in the mortgage of the secured creditor, such a debtor will have the right to apply for the opening of proceedings on insolvency case without determining the person of the receiver. The draft restructuring plan in this case must be approved by the sole secured creditor. Then the court will approve the restructuring plan without applying Article 126 (Approval of the debtor's debt restructuring plan) of the Bankruptcy Code.

In case of insufficient income of the debtor, who has the only housing within the norms, in order to fulfill the conditions of restructuring, by the decision of the economic court, a minimum amount of monthly implementation of the restructuring plan may be established. In this case, the obligation to prove the lack of income falls on the debtor.

When the debtor does not have the financial ability to repay the claims of the secured creditor on the established conditions, the court, at the request of the debtor, will set the minimum amount of monthly implementation of the restructuring plan until the full repayment of the obligation. Or will go on to the next procedure.

Amendments to the Tax Code, the people's deputies plan to eliminate the imbalances in taxation associated with the restructuring of liabilities for loans in foreign currency and to adapt some of the insolvency procedures of individuals.