We must pay tribute // Creditors of bankrupt construction are given back the right to compensation


The Ministry of Construction, following the decision of the Constitutional Court (CC), intends to close the legal gap that arose in 2019 with the introduction of a new regulation on shared construction in terms of protecting the rights of secured creditors who financed construction without being equity holders, this applies to both individuals who purchased non-residential premises, and and lending banks. Now, de facto, they are deprived of the opportunity to receive funds if the apartment building that has become problematic was transferred for completion to another investor or the Territorial Development Fund, but the project proposes to provide for the right to satisfy such requirements. Lawyers agree that now the rights of such creditors are not protected – the proposed changes can solve this problem. .

Leave a Reply