Law Amending the Budget Code of Ukraine Regarding Transactions with Contingent Liabilities Related to Financing from the EU, Foreign States, and International Financial Organizations, Including from Frozen Russian Assets
Structurally, the law amends Article 2 of the Budget Code, clarifying the concepts of ‘debt obligation’ and ‘public debt’, and supplements the Final Provisions with a new paragraph 35-1, which regulates the procedure for transactions with contingent liabilities.
Key Provisions of the Law:
• Granting the Debt Agency of Ukraine the right to perform transactions with contingent liabilities on behalf of the Minister of Finance
• Establishing a procedure for the Cabinet of Ministers to determine the main conditions of such transactions
• Possibility of providing limited rights for creditors to demand loan repayment from the state budget
• Obligation of the Debt Agency to maintain a Register of Transactions with Contingent Liabilities and publish relevant information monthly
• Right of the Head of the Debt Agency to undertake obligations on behalf of Ukraine, including waiving sovereign immunity in potential disputes