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4. Rational Dispute Resolution
4.1 Rule of Law
4.2 Enforcement of Contracts
4.3 Commercial Dispute Resolution
In-Country Assessment Information

4. Rational Dispute Resolution

Goal – An efficient institutional framework that balances the rights of the public, owners, lenders and borrowers in the event of a dispute or loan default

 

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4.1 Rule of Law

 

Core Question: Do all market participants abide by the rule of law and have confidence in the courts and the ability of the police to control crime? No – Weak,  Judicial reforms only increased political control over the judiciary. Civil society and the media are under the pressure from the government.

 

Impartiality

4.1.1   What is the confidence level of the strength and impartiality of the police, courts and contract enforcement? Very Weak – Percentile Ranking – 23.0 Trend  

Source: Governance Matters 2011, World Bank, www.govindicators.org

 

Judiciary

4.1.2   Can members of the judiciary be held accountable for their actions? No – Score 58 out of 100 – Very Weak Trend

Source: Global Integrity Report –  https://www.globalintegrity.org/global/the-global-integrity-report-2007/ukraine/

 

Costs of Crime

4.1.3   What are the business costs of crime and violence? Lower Costs – Ranking 77th  out of 142; Score 4.6 out of 10 –  Weak

Source: 2012-2013Global Competitiveness Report – World Economic Forum

http://www.weforum.org/issues/global-competitiveness

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4.2 Enforcement of Contracts

 

Core Question: Are systems in place for timely and efficient enforcement of contracts? Commercial – Yes – Strong; Residential – Unknown

 

4.2.1  Judicial Enforcement

Commercial – Strong – Ranking 42nd out of 185 Trend ­

4.2.1.1 What is the number of procedures involved in resolving a commercial dispute? 30

4.2.1.2 What is the time between the filing of a lawsuit and resolution in judicial enforcements? 343 Days

4.2.1.3 What is the cost of judicial enforcements as a percentage of debt value? 41.5%

Source: Doing Business http://www.doingbusiness.org/data/exploreeconomies/ukraine#enforcing-contracts

 

Residential – Unknown

Survey Questions

SQ 12  What is the time between notice of intent to foreclose and loan collection in judicial enforcements? Unknown

SQ 13  What is the cost of judicial enforcements as a percentage of property value? Unknown

 

4.2.2  Summary Proceedings

SQ 14  What is the time between notice of intent to foreclose and loan collection in summary proceedings if available to lenders? Unknown

SQ 15  What is the cost of summary proceeding if available to lenders as a percentage of property value? Unknown

 

4.2.3  Power-of-Sale

SQ 16  What is the time between notice of intent to sell and loan collection for power-of-sale agreements if available to lenders? Unknown

SQ 17  What is the cost of power-of-sale agreements if available to lenders as a percentage of property value? Unknown

Source – Financing Homes 2008, World Bank and International Housing Finance Corporation (no longer available) – www.ifc.org/ifcext/sme.nsf/AttachmentsByTitle/financinghomes/$FILE/FinancingHomes.pdf

 

 

 

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4.3 Commercial Dispute Resoluiton

 

Core Question:  Can commercial disputes be resolved fairly and efficiently without exorbitant expense and delay? No – Weak, bureaucratic process is complicated, arbitration mechanisms are improving.

 

Survey Questions

Commercial Courts

SQ 18  Do specialized commercial courts exist for the handling of property disputes and foreclosures? Yes – Weak, judges remain unaccountable.

Alternative Dispute Resolution

SQ 19  Are alternative dispute resolution mechanisms in place including commercial arbitration, private mediation and community based processes? Yes – Weak, Ukrainian Arbitration Center opened in January 2008 in cooperation with IFC.

Commercial Treaties

SQ 20  What bilateral, regional and international commercial treaties exist concerning business between countries? Strong – U.S., in negotiations with E.U., Canada, member WTO

 

 

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In-Country Assessment Information (as of June 2007)

FQ 8.  To what extent do practitioners report contracts as enforceable?

 

 

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