Ukraine. Banks permitted to write off bad debts

2011-11-04 17:17:04

The State Tax Service has granted banks the right to deduct through insurance reserve debts deemed uncollectible in accordance with legal acts of the National Bank of Ukraine (NBU).

The corresponding letter of explanation was signed by the chief of the State Tax Service Vitaliy Zakharchenko during a joint meeting with the leadership of the tax administration, the NBU, the Association of Taxpayers and representatives of banks.

"We acknowledge the beneficial results of joint negotiations with banks, because this work has been going on for months. And today, the tax service of Ukraine makes another step towards the banking sector," the official emphasized.

He also expressed hope that in the near future a commission will be formed to develop legislative initiatives to improve the financial situation in the banking sector. The commission will include representatives of government agencies and the banking sector.