AUB supports the decision of the Supreme Court's recognition of the legality of granting loans in foreign currency

The Supreme Court of Ukraine (AFU), examined the case for annulment of the loan agreement in foreign currencies are made on the side of the legitimate interests of creditor banks and abolished the decision of the Supreme Court for consideration of specialized civil and criminal cases (VSSGUD) according to which bank creditor has been recognized so that he had no right to issue foreign currency loans without personal monetary license. The Association of Ukrainian Banks welcomed the decision of the Supreme Court of Ukraine. As you know, in December 2010 VSSGUD his decision upheld the lower court, which invalidated the loan contract in a foreign currency mortgage agreement in connection with the absence of parties to a contract of credit an individual license of the NBU for the use of foreign currency on the territory of Ukraine as a means of payment. On this occasion, the Association of Ukrainian Banks was sent to appeal to the President and other government bodies to take decisive action on the prevention of the threat of mass non-repayment of foreign currency. As noted in a letter to the President of AUB Alexander Sugonyako to the President of Ukraine Viktor Yanukovych, on a review of claims of borrowers to the banks of termination of credit in foreign currency in 2009-2010, the judicial system of Ukraine has developed a common practice, which confirmed the legality of the issuance by banking institutions of Ukraine of loans in foreign currency if the bank's banking license and written permission from the NBU to carry out foreign exchange transactions. So, to summarize the Supreme Court of Ukraine stated that authorized banks on the basis of a banking license and written permission to carry out operations with currency values ??have the right to carry out operations to extend credit in foreign currency. Their findings on this issue and provided the National Bank of Ukraine and has repeatedly reaffirmed its position in litigation. With this in mind, - the AUB in a letter to the President of Ukraine - specialized decision of the Supreme Court of Ukraine for consideration of civil and criminal cases against the practice of other courts (Supreme Court, Supreme Economic Court of Ukraine) and renewed threats of mass deviations of the borrowers to fulfill their duties. As noted in this connection the President of AUB, a massive non-repayment of loans in foreign currency can have irreparable consequences for the banking system of Ukraine. "Cessation of the repayment of loans in foreign currency will negatively affect the liquidity and solvency primarily large banks. In addition, the need to return to the contractual terms of resources involved in foreign currencies, including retail deposits, generate additional demand for foreign currency in the interbank foreign exchange market that will lead to an uncontrolled devaluation of the hryvnia "- mentioned in a letter to the President of AUB. In order to resume lending to the economy of Ukraine and to prevent the next round of crisis in the banking system, AUB appealed to the President of Ukraine to the need to introduce public policy rigid payment discipline and inevitability of debt repayment. Also, taking into account the lack of a modern judicial system of Ukraine is the unity of jurisprudence on the issue of currency lending, AUB appealed to the President of Ukraine to initiate appropriate changes in the Law of Ukraine "On the Judicial System and Status of Judges".