#Commentary of Marina Zheinova on changes in Ukraine’s legislation allowing more efficient debt collection from population
Yesterday, on July 3, the Verkhovna Rada passed a law “On Amending Certain Legislative Acts of Ukraine Regarding Renewal of Lending”. The lawyers called the norms of this document draconian. In their opinion, the adopted law destroys the existing balance of rights of creditors and borrowers in favour of the creditor.
According to one of the experts, Alexander Gumirov, the guarantors are no longer exempted from liability, even if there have been events that terminate the surety, for example, when the statute of limitations has expired or the creditor and the borrower have changed the terms of the loan without informing the guarantor. Also, the approach to property surety changes: the guarantor now risks not only a pledge, but all their property. And if the guarantor dies, then the amount of the debt will be collected from his relatives.
The expert also explained that the ‘mortgage proviso’ on the procedure for settling the dispute in the event of such a dispute is now a title deed for real estate. The creditor can, with the help of a notary, re-register the right to own a pledge on themselves without courts and proceedings.
In addition, according to transitional provisions, the adopted law also applies to treaties that entered into force before its adoption.
And now let’s remember the debts of Ukrainians for utilities. According to the Ukrainian media, in April 2018 arrears for heating and hot water supply amounted to 13.2 billion UAH, arrears for the maintenance of houses, facilities and adjacent territories – 3.4 billion UAH, the debt for the removal of domestic waste amounted to 400 million UAH, debts for centralized water supply and drainage – 1.9 billion UAH, for electricity – 3.9 billion UAH.
According to the law, it is possible to arrest and sell equipment, car and even the debtor’s apartment offset debts, and the procedure for taking property off from Ukrainian citizens with the passage of the new law is simplified as much as possible. In this case, according to Ukrainian lawyer Oleg Boyko, utilities can file a lawsuit to recover any, even the most minimal arrears for their services.
One may come up with the idea that the Kiev authorities are doing everything to ensure that Ukrainians are massively deprived of their homes.
Marina Zheinova, the DPR People’s Council deputy