OREANDA-NEWS. With the aim of meeting the requirements of the Law of Ukraine, the National Bank of Ukraine has approved a framework agreement for financial restructuring.  

The framework agreement shall establisg a cooperative framework for the coordination of actions by contractual parties in financial restructuring procedures.

In accordance with the approved document, the parties to this Agreement shall be:

·         banks and no-banking financial institutions and

·         the Deposit Guarantee Fund

The coordination of actions between shall be based on the rule of law, integrity, rationality, concerted actions,  equality  of rights, honest partnership, the protection of each other's interests, prompt response, openness and transparency of cooperation, information sharing and confidentiality preservation, as well as duly fulfilment of contractual obligations.  

Under the Framework Agreement, the parties shall:

·         maintain business contacts, hold consultations and meetings on a regular basis;

·         put efforts to make good progress in financial restructuring;

·         exchange information between each other;

·         rollover the debtor’s debt with fresh financing according to the restructuring plan;

·         take the necessary measures to ensure the protection and preservation of collateral securing the debt;

·         duly  comply with the provisions of the Framework Agreement and implement decisions adopted by the Steering Committee of financial institutions.

·         The coordination of actions between parties shall not be limited to complying with the principles underlying the Framework Agreement.

Pursuant to the Framework Agreement, the award of the Arbitration is final and binding upon all parties. However, each party to the agreement shall have the right to unilaterally withdraw from the agreement.   To do this, it is necessary to send written notice to the NBU within 30 days of the date of refusal.