New rules for managing state property and selling seized assets

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New rules for managing state property and selling seized assets

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How the rules for managing state property and selling seized assets will change: a step towards European standards

The Verkhovna Rada of Ukraine has registered a revised draft law No. 11139! which proposes to New rules amend the legislation in the field of state property management! protection of creditors’ rights! and sale of seized assets. At first glance! this sounds like another legal document that concerns a narrow circle of specialists. But if we look more closely! we see a whole system of new opportunities! restrictions! and nuances that affect not only the state! but also business! creditors! and everyone who seeks transparency in legal relations.

Next! I propose to consider the main provisions of the draft law and their potential consequences.

Moratorium: protection or trap?

The draft law proposes to extend the moratorium on the c level contact list forced sale of assets of companies in which the New rules state owns more than 50% of the shares. This means that such assets cannot be forcibly sold for three years after the law comes into force.

At first glance! this looks like a necessary protection for state-owned enterprises from external pressure. But there is another side to the coin. The moratorium can become a kind of “bunker” that hides the inefficiency this culture shapes the way your employees view the business of enterprises from creditors and restricts access to investment.

A similar practice is known in foreign countries

For example! in Greece! during the financial crisis! a moratorium was imposed on the sale of state assets. This made it possible to stabilize the economy! but created significant pressure on the budget due to the accumulation of debts. As a result! such assets were still sold! but on less favorable terms.

In Ukraine! the key issue remains balance: how to protect the interests of the state and creditors at aob directory the same time? Perhaps it would be more appropriate to establish a mechanism for partial access to assets under strict control instead of a complete blocking.

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