President held meeting on problems in banking sector

President Viktor Yushchenko met with the leadership of the National Bank, law enforcement and judicial authorities, and temporary administrators Ukrprombank and Nadra Bank, presidential press office reported.

At the meeting sides have discussed the situation in problem banks and implementation of the Decree of the President of Ukraine "On measures to ensure the restoration of stability in the banking system" from October 8, 2009.

The President instructed the participants to enhance the effectiveness of the financial, legal and legislative measures provided by the Decree in order to provide return of loans by unscrupulous borrowers.

First Yushchenko drew the attention of National Bank Chairman to the need to create a full registry of unscrupulous borrowers to reduce the risks for other banks.

The President also instructed to take additional measures in order to prevent unscrupulous borrowers from participating in purchases of goods, works and services for public funds.

The President instructed the Prosecutor General's Office to increase the activity of the working group on the development of measures to protect the rights and interests of depositors of banks.

To law enforcement, judicial authorities, the State Border Service the President gave instructions to strengthen coordination of work with problem borrowers, particularly temporarily limiting their right to travel abroad and providing the necessary legal basis of these actions.

At the same time President emphasized the importance of informing such borrowers about the grounds for restricting their travel abroad as early as possible and provide them with the opportunity to resolve their problems, rather than informing them of such a decision when they are at the boarder crossing checkpoint.

The President also instructed to elaborate draft amendments to the legislation aimed at strengthening legal grounds for the prosecution of unscrupulous clients.

These changes should include in particular the introduction of limits on borrowers using their property or funds in case of malignant evasion of obligations before their bank, because due to the actions of these clients, ordinary citizens that entrusted their savings to bank system suffer.