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8.1.3 Banks specific issues
As of July 6, banks in Ukraine can automatically seize funds from bank accounts for unpaid debts through an automated system. The new Automated System of Enforcement Proceedings (ASEP) allows a public or private lender to create a special request in the system about the existence of funds in a debtor’s account, which will automatically go to all the banks that have joined the ASVP. The lender can order a seizure of funds and send banks a request to write off funds from accounts. The new ASEP is already used by the biggest Ukrainian bank PrivatBank, as well as six other Ukrainian banks. 44 banks are testing it and are expected to join, 11 are still in negotiations. In order to collect debts previously, lending agencies had to send requests to Ukrainian banks to figure out where a debtor had funds. Banks often refused to provide such information, making it difficult to collect debts.
8.1.4 Bank news
Ukraine’s central bank yesterday appointed Serhiy Nikolaychuk, to be the new Deputy Governor responsible for monetary policy. Nikolaychuk has worked for 15 years at the National Bank of Ukraine, rising to head the monetary policy department. In 2019-2020, he was the Deputy of then Economy Minister, Timofey Milovanov. For the last year, he has led the macroeonomic research department of ICU investment bank. Timothy Ash wrote that with the Nikolaychuk appointment by President Zelenskiy is sending “a clear signal to the IMF that he wants to put the NBU back on a reform path, or do whatever it takes to make peace with the IMF this side of a Biden meeting.”
38 UKRAINE Country Report August 2021 www.intellinews.com