The financial institutions will lend more if the legislative inconsistencies impeding the return of funds are removed.
According to the relevant committee, this goal is in line with the finalized bill, which will be reconsidered by the Verkhovna Rada on the first reading today.
Now the document is called quite ambitious: “On Amending Certain Legislative Acts of Ukraine Regarding Renewal of Crediting” (№ 6027-d). And it’s not so much about restoring customer confidence in banks, but about simplifying the process of returning and collecting debts.
Thus, for example, it is assumed that reconstruction or unauthorized construction will not allow bad faith debtors to withdraw objects from the real estate mortgage.
On the one hand, the time limits for bringing a claim. by the creditor to successors are reduced (from one year to 6 months). On the other hand, this period will not be calculated from the moment of receipt of the inheritance rights certificate, but from the moment when the financial institution found out about this fact.
Moreover, it is suggested to prohibit the registration of the cars which are under any encumbrance, without the consent of the lender. This will also be followed by the notaries, who certify transactions on alienation of vehicles.
At the same time, banks will have access to the State Register of Civil Status Acts. Thus, they will verify the information provided by the potential borrowers, and also will monitor if the debtor is still alive to ensure that the momentum to deal with the heirs is not lost.