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Ukrainian parliament adopts controversial law on restructuring foreign loans

Posted on 04/07/2015 · Posted in Articles, Ukraine
We share an article published in Ukranian Today 3/7/2015
» See original article in Ukranian Today


Government officials criticise adoption of bill

Ukraine’s parliament on July 2 adopted a law on restructuring liabilities on loans in foreign currency. The bill provides for converting of foreign currency loans by banks at a reduced rate of UAH 5.05 to USD 1.
The current rate is 22 UAH to 1.

Ukrainian government officials criticised the new law, which they said is unfair to people who did not take out foreign loans. The topic was hotly discussed by Ukrainians on social media.

Ukrainian Finance Minister Natalie Jaresko said the law will result in losses amounting of UAH 95 billion, more than what Ukraine spends on its vertically-integrated military and police.

Several deputies said they made the wrong decision by voting for the bill. They said they did not know what they were voting for. Some lawmakers are trying to withdraw their votes, others are asking Ukrainian President Petro Poroshenko to veto the law.

Hundreds of people have held protests in Kyiv recently demanding the reduction of conversion rates of foreign laws.