The bankers think it to be a compromise
On July 3, 2014, the Verkhovna Rada of Ukraine adopted a law on foreign currency debt restructuring into UAH, in the first reading (registration number is 4185а-2 dd. 01.07.2014), the NBU’s press-office reports.
Long-term consultations between the representatives of banking community, public sector and regulators have been held, their outcome is the decision on how to solve the problems of the borrowers, who have unpaid mortgage debts in foreign currency, which is regarded to be a compromise.
«The provisions taken as a basis for drafting the above said law meet, in general, the principles of social responsibility the country and business undertake, the supremacy of law and impartial protection of a consumer of financial services», – told Head of the NBU Valeria Gontariova.
Moreover, what is meant here is re-calculation of unpaid debt into UAH at the official rate for UAH against foreign currencies, which is determined on the date of restructuring, and in view of the loan fee after re-calculation and valid until the expiry of the loan agreement with amendments, in the amount of interest rate fixed and valid before restructuring. The monthly payment after restructuring should not exceed the loan instalment paid monthly before restructuring, which is re-calculated into UAH at the official rate for UAH against foreign currencies, determined on 01.01.2014.
The draft law also envisages repayment of loan debt in foreign currencies under the collateral agreement implying that a borrower hands over a mortgage item to a lender (bank). This terminates loan obligations, even if the mortgage value is not sufficient enough to fully pay off the debt.
«You shouldn’t forget that the financial and economic situation the country is facing is rather complicated. The mechanism set out in the above said draft law helps distribute financial obligations between the country (through entering changes to the Tax Code of Ukraine), banks and individual borrowers, what is, in regulator’s opinion, a compromise», – said Head of the NBU.
