Restoration Work

We live in a period when the macroeconomic situation is at its most difficult since 1996. The banking system serves as the circulatory system of the national economy. And all kinds of obstructions in its natural functioning lead to very sad consequences for the entire system.

The over-indebted corporate sector and its inability to service its debts on the one hand and, one third of deposits outflow from commercial banks and knock-on effect of banking resolutions on the other, are the background for “restoration work” in this sector.

Recent months have seen the function and structure of some banks play a nasty trick as they cannot fail without the advent of significant adverse effects on the financial markets and economy at large and without some cost to citizens. But it might simultaneously raise the question: could (oligarchic) special-purpose banks still perform their crucial economic functions?

Restructuring and bankruptcy practitioners have expressed their views on the pitfalls of valid legislation. As a result, we see a real battle for assets between lenders and borrowers. The issues of preserving and securing assets are the subject of sophisticated legal strategies on both sides of the fence.

All of us await stabilization in Ukraine. But this story is set to run and run…

Happy reading,

Olga Usenko