Credit holidays: will Ukrainians forgive debts?


Is it not possible to return loans to banks after adopting the law on “credit holidays”? We answer this and other questions.

In relation to the coronacris in which our country found itself, the Ukrainian government adopted a package of anti-crisis laws. One of them is Bill. Number 3220Adopted on March 17, which exempts FLP from paying Unified Social Contribution (March 1 to April 30), prohibits tax audits of a business during a specified period, and March 1 to April 30, 2020 Till also exempts from penalty and penalty for late payment in consumer loans. year.

What does “credit vacation” mean?

We immediately note that “credit holiday” does not mean the termination of interest payments, but is only allowed to be delayed for the duration of the quarantine. Banks can free customers from repaying the principal amount of the loan in a specified period, in other words, the loan repayment period is extended.

At the same time, we draw your attention to the fact that banks do not stop charging interest on consumer loans, because at the same time they pay interest on deposits to other customers. The difference is that the interest can be paid after quarantine. It is also important to emphasize that, by law, late fines and penalties for the quarantine period are prohibited.

In difficult cases, customers may be offered capitalization of interest payments. NBU celebrateThat capitalization will allow businesses to remain liquid, and individuals to maintain the required level of current consumption.

At the time of restructuring, banks do not have the right to increase the interest rate on loans. However, as the bankers themselves say, rates can still rise.

Who can count on “credit leave”

You can restructure loans that were serviced by borrowers as of March 1, 2020 without arrears and other nuances. Individuals and businesses who have experienced financial difficulties due to quarantine can rely on preferential treatment on a loan – all those who have lost part or all of their income and work. In this case, the bank will have to provide proof of loss of income or loss of job.

Banks will personally consider applications for “credit holidays” for medium and large businesses, taking into account financial statements, the current state of the customer and his vulnerability to the economic situation in the country.

How to get “Credit Holiday”?

The National Bank suggested that banks independently provide a grace period to customers who lose revenue due to quarantine. But it will, in all probability, fail. Therefore, if you want to go on “credit leave”, you can contact the service bank yourself, explain the situation, supported by documents, and send a request for restructuring.

It is possible to do online (and during quarantine – and it is necessary). If you have a loan without an outpost, a telephone conversation record, a chat message or an application on the site can be used as a restructuring agreement. In return, the bank will process the appeal remotely.

Which banks already offer “credit holidays”?

The first state-owned to support the reorganization were Privantbank and Oshbank. Then the premier FIIB, Raifsen Bank Avel, joined. A few days ago, National Bank Deputy Chief Oleg Churi said that more than 10 banks were beginning “credit holidays”.

What about MFI?

Several Ukrainian microfinance organizations also announced the start of credit holidays. In particular, Cashberry stated that in case of delay, there would be no increased interest rate from 1 March 2020 until the end of quarantine. MyCredit customers can apply for debt restructuring directly to a personal account of service. And Moneyveo will not charge penalties for late payments on loans. The company offers two options for overcoming a difficult situation – debt expansion or restructuring. The decision is made individually for each contacting customer.

That is, no one intends to forgive the debt?

A credit holiday is not really a debt forgiveness, but only a delay. The grace period will sooner or later expire, and it will be necessary to not only repay the loan, but also the interest to use it.

Further investigation: How loans work during quarantine in Ukraine: analysis


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