KIEV, June 25 – The Association of Ukrainian Banks and the Ukrainian Credit-Banking Union have called on the president to veto a law banning the sale of property used as collateral.

"The law bans the sale of property used as collateral where borrowers live, if borrowers fail to make payments under credit agreements. The lawmakers are unjustifiably protecting the interests of dishonest borrowers, creating the basis for mass non-payment," reads a report of the Ukrainian Credit-Banking Union.

The union said that the law could provoke the growth of bad credits, which in turn would make it difficult for some banks to make payments on deposit agreements. The union said that as of the middle of June, bad credits in the banking system had grown to a critical level, being UAH40 billion or 6% of the banks' credit portfolio.