The legislative act rules that a crediting bank has right to write off the amount of losses that emerged as a result of annulment, in compliance with the Law of Ukraine “On conversion of loan obligations from foreign currency into local currency,” of a part of the debt of individual borrowers at the expense of earlier created insurance reserves.
The Law also envisions that a creditor has right to include into expenditures a part of annulled individuals’ debt in the amount unwritten-off at the expense of the insurance reserves. The Law also envisions that incomes of individual-borrowers that emerge as a result of annulment of a part of the debt by the creditor, as well as the incomes from returning of collateralized property by individual-borrowers to the creditors are exempted from individual income tax.
Respective draft law was registered under No. 0939.