As Chair of the Committee Oleksandra Kuzhel stressed, the main reason for inability of Ukrainian credit unions to counteract the negative impact of the 2009-2011 financial crisis was irregularity of legal field and inability of certain state institutions to efficiently apply their measures of influence.
The people's deputy particularly emphasized that under conditions of a peak outflow of savings from deposit and other accounts of the union's members, it is necessary to apply certain measures to stabilize the situation. At the same time, in words of Oleksandra Kuzhel, during the 2009-2011 financial crisis the state increased regular requirements and requirements to liquidity, introduced taxation, increased fines and licence fees, and referred absence of licence to the criminal offence. As a result of this, from December 2008 by December 2011 over 200 credit unions were destroyed, their assets decreased from UAH 6 bln. to UAH 2,5 bln.
Committee members said the 2008 crisis became a catalyst for many problems that have been accumulating since 2003. According to the speakers, state authorities were aimed at destroying hundreds of credit unions of Ukraine.
It was stressed that problems of credit unions can be settled by introducing efficient legal mechanisms of supporting this field, particularly, adopting a respective bill, which is now being elaborated under a working title "On the order of restoring solvency or liquidation of Ukrainian credit unions".
The document includes proposals on determining legal and organizational bases for overcoming negative consequences of the financial crisis, offences, and inaction of state officials. The bill stipulates establishing an authorized body which will regulate processes of liquidation and reorganization of credit unions, and determining the damage caused to credit unions of Ukraine with actions or inaction of state authorities during the 2009-2011 financial crisis.
The document stipulates creating an authorized body which shall implement powers and bear responsibility for managing the process of liquidation or restoring solvency of credit unions.
The bill determines main stages of the liquidation process (restoring solvency) of a credit union and powers of subjects of this process.
The Committee members outlined that the bill is being elaborated in order to amend the Law "On credit unions", establish a mechanism of implementing functions of managing the liquidation process of a credit union, settle the problem of mechanism for protecting credit unions from the risk of inadequate liquidity, etc.
Following the results of the discussion, its participants decided to recommend that respective executive structures submit proposals on the abovementioned issues to the Committee on Entrepreneurship, Regulatory and Antimonopoly Policy by August for their further consideration by the working group.