The World Bank and the International Monetary Fund have criticized the parliament's decision to impose a moratorium on repossession of citizens' private residential real estate that are used as collateral for loans.
The
criticism was expressed in an article by the World Bank’s Country
Director for Ukraine, Belarus, and Moldova Martin Raiser and the head
of the International Monetary Fund’s mission to Ukraine, Ceyla
Pazarbasioglu, which was published in the Dzerkalo Tyzhnia newspaper.
“Counterproductive
steps such as the recent ban on alienation of property mortgaged
against loans should be avoided,” the article states.
The
World Bank and the IMF called on the Ukrainian authorities to begin
introducing a strategy for rehabilitation of the country’s banking
sector as soon as possible.
“Delays
have resulted in a further loss of assets and an increase in the
government’s expenditures. The stabilization of deposits in May 2009 is
thus far creating a favorable situation and increasing the chances of
success. Consistency and persistence [on the part of the authorities]
will be decisive,” the article states.
The
World Bank and the IMF said that the government’s declared intention to
recapitalize several major banks was one of the most important
achievements of the authorities in the recent past.
At the same time, Raiser and Pazarbasioglu called on the Ukrainian authorities not to delay realization of this intention.
As
Ukrainian News earlier reported, the law No. 3459-1 that the parliament
approved the by 237 votes on May 21 imposed a moratorium on
repossession of private residential real estate that were used as
collateral for loans.
The Association of Ukrainian Banks has called on President Viktor Yuschenko to veto the law.
