Question remains topical
Independent Association of Banks of Ukraine (IABU) believes that the problem of increased access to state register does not lose its relevance, the press service of the organ says.
The issue remains urgent even after restoring access of notaries and state executors to the registers for the registration of real estate rights and encumbrances before 1 January 2013 (relevant Order of the Ministry of Justice took effect 14 October 2013). This is access to the Register of ownership of real property, the Unified Register of Prohibitions on Disposal of Immovable Property and the State Register of Mortgages.
Notaries have obtained the right to search these registers when executing notary acts (opening hereditary cases, certificating the transactions, etc.) in the absence of information about the object in the State Register of Rights to Immovable Property and the right to form on the results of the search the extracts from registers. In turn, public executors have obtained similar possibilities under enforcement of court decisions and other authorities within their jurisdiction.
In its appeals to the authorities, IABU has repeatedly informed about the problem of increased access of banks to public registers and the provision of information by electronic correspondence. Introducing mechanisms for financial institutions accessing information about potential borrowers, contained in the relevant public registers, is a prerequisite of reducing the risks for an increase in business lending.
Numerous problems at using public registers will be resolved after the adoption of Cabinet-initiated draft law "On Amendments to Certain Legislative Acts of Ukraine (regarding improvement of normalization of relations to real property)", Reg. № 2049, supported by members of IABU.
However, there is still a number of issues not covered by the bill that need to be addressed through amending the Law of Ukraine «On State Registration of Rights to Immovable Property and encumbrances».
Getting up-to-date information from public registers will allow banks to receive objective information about potential clients, their financial position and liabilities, check borrowers' financial position upon pending applications for loans as well as in the process of collecting bad debts.
Besides access to information concerning active cases against the borrower with enforcement proceedings or bankruptcy proceedings allow banks to predict probable deterioration of payment discipline of the borrower and take early action to eliminate problems with repayment.
