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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
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.
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
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
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 ↑
126.96.36.199 What is the number of procedures involved in resolving a commercial dispute? 30
188.8.131.52 What is the time between the filing of a lawsuit and resolution in judicial enforcements? 343 Days
184.108.40.206 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
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
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
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.
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.
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
Source: Ministry of Economy Ukraine www.me.gov.ua/
FQ 8. To what extent do practitioners report contracts as enforceable?