From next year, large corporate borrowers are required to audit

Large corporate borrowers in 2018 are required to audit financial statements, the Director of the financial stability Department of the Central Bank Vitaly vavrischuk.

“In 2018 the rule takes effect, which requires all borrowers with a loan of more than UAH 200 million, surely passed the audit. Financial statements must be confirmed by the audit. We believe that the Bank that issues such a major credit must obtain confirmation of the accuracy of statements from an independent auditor. Otherwise there can be no certainty that the financial indicators reflect the real situation in the company,” said vavrischuk during the meeting of the NBU with business leaders who participate in the survey on business expectations.

According to him, in case if the business operates as the holding company must provide financial statements not only for the company, which directly involves a loan, but the entire group.

“This creates some short-term discomfort due to additional costs for auditors, but on the other hand, clear financial accountability and transparency of the borrower provide a better assessment of credit risk and, consequently, a lower price of credit resources”, — said vavrischuk.

He also said that the evaluation of the creditworthiness of the client, you cannot use the so-called “management report”.

“We want companies filed official statements, which would form the basis of an assessment of solvency of the company. Borrowers must become transparent,” said vavrischuk.