Rada passes at first reading bill stimulating investment

Ukraine’s Verkhovna Rada has passed at first reading bill No. 1059 on stimulating investment, envisaging in particular the annulment of developers’ mandatory contribution during construction of facilities.

The respective bill at first reading was supported by 290 MPs at a plenary meeting of parliament on Wednesday, the Interfax-Ukraine correspondent has reported.

The lawmakers also supported the reduced preparation of this bill for second reading.

The document provides for amendments to a number of legislative acts on stimulating investment activity in Ukraine, in particular, the cancellation of the developers’ contribution to the development of the community’s infrastructure during the construction of residential and nonresidential facilities, as well as the abolition of the mandatory expert pecuniary valuation of private land plots when transferring them to pledge.

In addition, the bill proposes to stimulate a reduction in credit rates by reducing the risks of creditors, in particular via transferring property (used as collateral) in trust ownership of the creditor, which he can sell if the debtor does not meet his obligations. In this case, the borrower’s ownership right shall terminate from the moment the property is transferred to trust. In addition, the collateral facility will not be included in the liquidation mass of banks.

In the field of justice, it is envisaged to introduce a standard of proving “bigger credibility of the evidence” instead of “evidence sufficiency” into the Commercial Code of Ukraine, as well as making it possible for the court to demand a group of the same type of evidence without taking into account the individual characteristics of each document. Such measures will reduce the time for consideration of economic disputes and increase the effectiveness of protecting the interests of the parties.


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