Poroshenko vetoes law on foreign currency loan restructuring

President of Ukraine Petro Poroshenko has vetoed the law on the restructuring of foreign currency loans (No. 1558-1) and offers its complete rejection.

Censor.NET informs citing Interfax-Ukraine.

"According to the NBU, as of today, natural persons - residents of Ukraine have received $4.28 billion in foreign currency loans, including $2.16 billion in mortgage loans. Converting foreign currency loans at UAH 5.05 per $1 - the exchange rate valid at the time when the majority of loan agreements were concluded - will cause damage to the banking system of UAH 76 billion (approx. $3.23 billion)," the president argued, delivering his decision to the parliament on Friday.

As reported, the law on the restructuring of foreign currency loans was passed in the Verkhovna Rada on July 2 after which a number of people's deputies called on the president to use his right of veto.

In turn, the National Bank of Ukraine on July 3 said the adoption of this law would cause devastating damage to the financial and banking system of Ukraine, jeopardize the well-being of all citizens. "If all foreign currency loans granted to natural persons - residents of Ukraine are converted into hryvnia at the rate of UAH 5.05/$1, the banking system will suffer losses amounting to some UAH 100 billion (approx. $4.25 billion)," the NBU stated on its website.

Speaker Volodymyr Hroisman delayed with signing the passed law. He did it only after a government bill on the restructuring of foreign currency mortgage loans with additional benefits for ATO members was registered at the Verkhovna Rada.