The Verkhovna Rada of Ukraine has registered Bill No. 12148-1 dated 01.11.2024 "On Amendments to the Section "Final and Transitional Provisions" of the Civil Code of Ukraine Regarding the Peculiarities of Lending and Financial Leasing during the Period of Martial Law".
The bill is aimed at supporting entrepreneurs, in particular farmers and representatives of small and medium-sized businesses, who have suffered as a result of hostilities, by providing the opportunity to suspend the fulfillment of financial obligations. The adoption of the bill will ensure the protection of business property interests and will avoid negative financial consequences for business entities that have lost the ability to function normally due to military aggression.
Features and main provisions of the bill
1. Suspension of debt payments
The bill provides for the possibility for micro, small and medium-sized businesses that have suffered as a result of the war to submit an application for suspension of payment of monetary obligations under loan or financial leasing agreements. This includes the principal amount of the loan, interest, commissions and other payments. This rule applies to the period of martial law, as well as for a year after its end.
2. Prohibition of forced collection of collateral and return of leased objects
The bill prohibits creditors and lessors from demanding payment of debts or forcibly returning financial leasing objects from entrepreneurs who worked in territories of active hostilities or occupied since February 24, 2022. This means that real estate, equipment, vehicles and other collateral located in the affected territories will be protected from foreclosure for the period of martial law and for a year after its end.
3. Extension of the terms of loan and financial leasing agreements
The draft law establishes that the term of loan agreements, as well as financial leasing and other agreements related to securing these obligations, is extended for the period of suspension of debt payments. This will allow entrepreneurs affected by the war to have more time to fulfill their financial obligations.
4. Suspension of enforcement actions
For the period of martial law and for a year after its end, all compulsory enforcement actions related to the imposition of arrests on the property and funds of debtors subject to this draft law are suspended. This includes the cancellation of previously imposed arrests, which will significantly ease the financial burden for affected entrepreneurs.
5. Confirmation of the facts of destruction or loss of property
The draft law provides for the possibility of confirming the fact of destruction or loss of property (real estate, equipment or vehicles) in areas of active hostilities or occupied territories using an extract from the Unified Register of Pre-trial Investigations. This will allow entrepreneurs to document the loss of property that was previously covered by credit or leasing obligations.
What are the benefits of adopting the draft law?
The adoption of draft law No. 12148-1 will provide affected entrepreneurs and farmers with legal mechanisms to protect their property rights and ensure the possibility of resuming economic activity after the end of hostilities. The draft law has a significant socio-economic effect, as it contributes to the preservation of enterprises, jobs and the economic stability of the country, which is especially important in the conditions of war and reconstruction of Ukraine.
Overall, this bill is an important step towards supporting Ukrainian business and protecting national economic interests during a difficult period.
The bill is aimed at supporting entrepreneurs, in particular farmers and representatives of small and medium-sized businesses, who have suffered as a result of hostilities, by providing the opportunity to suspend the fulfillment of financial obligations. The adoption of the bill will ensure the protection of business property interests and will avoid negative financial consequences for business entities that have lost the ability to function normally due to military aggression.
Features and main provisions of the bill
1. Suspension of debt payments
The bill provides for the possibility for micro, small and medium-sized businesses that have suffered as a result of the war to submit an application for suspension of payment of monetary obligations under loan or financial leasing agreements. This includes the principal amount of the loan, interest, commissions and other payments. This rule applies to the period of martial law, as well as for a year after its end.
2. Prohibition of forced collection of collateral and return of leased objects
The bill prohibits creditors and lessors from demanding payment of debts or forcibly returning financial leasing objects from entrepreneurs who worked in territories of active hostilities or occupied since February 24, 2022. This means that real estate, equipment, vehicles and other collateral located in the affected territories will be protected from foreclosure for the period of martial law and for a year after its end.
3. Extension of the terms of loan and financial leasing agreements
The draft law establishes that the term of loan agreements, as well as financial leasing and other agreements related to securing these obligations, is extended for the period of suspension of debt payments. This will allow entrepreneurs affected by the war to have more time to fulfill their financial obligations.
4. Suspension of enforcement actions
For the period of martial law and for a year after its end, all compulsory enforcement actions related to the imposition of arrests on the property and funds of debtors subject to this draft law are suspended. This includes the cancellation of previously imposed arrests, which will significantly ease the financial burden for affected entrepreneurs.
5. Confirmation of the facts of destruction or loss of property
The draft law provides for the possibility of confirming the fact of destruction or loss of property (real estate, equipment or vehicles) in areas of active hostilities or occupied territories using an extract from the Unified Register of Pre-trial Investigations. This will allow entrepreneurs to document the loss of property that was previously covered by credit or leasing obligations.
What are the benefits of adopting the draft law?
The adoption of draft law No. 12148-1 will provide affected entrepreneurs and farmers with legal mechanisms to protect their property rights and ensure the possibility of resuming economic activity after the end of hostilities. The draft law has a significant socio-economic effect, as it contributes to the preservation of enterprises, jobs and the economic stability of the country, which is especially important in the conditions of war and reconstruction of Ukraine.
Overall, this bill is an important step towards supporting Ukrainian business and protecting national economic interests during a difficult period.
