Do only cowards give debts back?

Experts say that borrowers are increasingly using various mechanisms required by applicable law, to evade obligations on loans and collateral agreements. On November 2011, according to the NBU, the volume of Ukrainian banks reserves for active operations amounted 165.5 bln., 124.1 billion UAH. (75 %) of which consist of of provisions for so-called "Bad" loans. In its turn, the ratio between reserves for active operations and distressed assets of domestic banks is 100.01 %.

In October of this year the total debt of legal entities to Ukrainian banks exceeded 606 billion USD., And since the beginning of the year , it increased by 12.2%. The banks lack the deposit base and lack of money supply. The financial "hunger" significantly inhibited the lending process. Forecasts of international rating agency Moody's are not encouraging as well, according to which Ukraine needs 3-4 years to solve the problem of "bad" loans.

In a situation where a boom in lending followed defaults boom, many unscrupulous borrowers feel uncommitted loans, despite the real solvency. All the matter is that in addition to voluntary bank "donations" in the form of different variations restructuring, borrowers received a formal basis for not returning borrowed funds using legal mechanisms.

One of the most common is the bankruptcy of a business entity, which involves the introduction of a moratorium on satisfaction of creditors, including the cessation of accrual of penalties. Another mechanism is to challenge credit agreements invalidation. Also, they do not hesitate to recognize the absence of borrowers from banks or mortgage foreclosure rights under the guarantee agreement or acceptance obligations such action is stopped.

Current legislation provides sufficient legal basis to meet the requirements of debtors, whereby the bank actually deprived of the opportunity to return the loan funds or to foreclose on the collateral, said the Corporation DMS. "Enterprises of the Corporation are borrowers of one of the oldest Ukrainian bank - PromInvestBank. We were among those, who used the borrowed funds for large industrial projects before the financial crisis, " - said Vice President Oleg Kutyrkin DMS. - "This year, we signed an agreement with the creditor, in which commit at the optimum time to fulfill their obligations."

According to a top manager of the Corporation, provided financial capabilities allow enterprises to implement DMS tasks even during the crisis. For example, to put into operation in compliance with the terms of two houses of category " affordable housing", which participated in the construction including private investors, i.e. future owners of the apartments. Thus, the Corporation was able to meet its obligations to Donetsk citizens. Now it's time to fulfill obligations to the lender.

As to the popular view that debts give only cowards they say in DMS: "to give back the " hard earned " when the law itself gives you the opportunity to avoid this, to save the reputation and trust of business partners is just a manifestation of business ethics and skills conduct of a civilized business."