July 1, 2020 VigoLex Managing Partner Ganna Buiadzhy took part in the webinar “Trust (Fiduciary) 2”, organized by the Ukrainian Bar Association. Leading legal scholars, legal practitioners in the field of civil law, as well as the Minister of Justice of Ukraine joined the event.
During her speech on the topic “Fiduciary transfer of title – What It Is and How It Works in Ukraine”, Ganna Buiadzhy analyzed in detail the provisions of the current legislation regarding the regulation of security trusts. However, she emphasized the potential risks of this method of collateral, both for debtors and lenders.
According to Ganna Buiadzhy, “the law that introduced the fiduciary transfer of title is ill-conceived, superficial and written without analysis of the possible problems that it can lead to in practice. It lays the potential for abuse, both by the debtor and by the lender. Moreover, none of the parties is fully protected from illegal actions of the other side. These, as well as other factors, can lead to the leveling of the inherently good and effective mechanism for ensuring the fulfillment of obligations, which successfully operates in most countries of the world.”.