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For instance, the law clarifies the responsibilities of surety providers, as the mechanism of sureties now is inapplicable in many ways. It stipulates that any reconstruction of pledged real estate or any construction on a pledged land plot does not cancel the submitted collateral (reconstruction used to be a favourite means for debtors to withdraw their collateral). It stipulates a simple mechanism for out-of-court collateral to be seized from a defaulted borrower and diminishes a borrower’s ability to protect himself against such seizures.
"The law will indeed add much to creditor protection and may result in increased lending activity and better rates for potential borrowers," Concorde's Alexander Paraschiy wrote in a note on June 4. "On top of that, the law will allow some banks to resolve their bad loan issues by collecting collateral. All in all, this is a positive development for the Ukrainian banking system."
The National Bank of Ukraine (NBU) is going to stimulate the nation's government bond market by making it easier to place local bonds on the primary placement, the regulator said in a statement e-mailed to bne IntelliNews on June 2. Specifically, primary dealers are allowed to act as brokers for their clients when they are purchasing bonds in the course of primary placement on their own behalf or on behalf and at the expense of their clients. According to new regulations drafter by the NBU, bonds also can be credited to primary dealer’s own account in securities in case of the failed or late funds transfer by a client. The period for receiving the funds from participants of the placement is extended from two to five business days. The new regulations will enter into effect on September 1.
8.1.3 Bank news
PrivatBank (Kyiv) in January-June 2018 received UAH6.926bn ($260mn) of net profit against UAH2.908bn of net loss for the same period of 2017. PrivatBank net interest income increased by UAH528mn, or 16%, net commission income by UAH505mn, or 15%, according to a press release. Other figures are not specified. The regulatory capital of PrivatBank as of July 1, 2018 was UAH20.5bn, the regulatory capital adequacy ratio was 18.39% (with the norm being at least 10%), instant liquidity stood at 38.37% (with the norm of not less than 30%).
Swiss buy majority shares in Lviv bank. Swiss Asset Management firm
45 UKRAINE Country Report August 2018 www.intellinews.com