At its meeting held today, the NBU’s management board approved basic provisions of the draft memorandum specifying the procedure for restructuring foreign currency loans (hereinafter – the Memorandum). Thus, the draft memorandum gained the status of a full document to be signed by all parties, as posted by the NBU’s press-office on the Facebook page.

The text of the memorandum was approved at the meeting with the singing procedure to follow.

In particular, the basic provisions of the memorandum envisage:

1. to exchange the consumer loan debt in foreign currency, as specified in par.4 of the memorandum, into hryvnia, at the rate set on the date of restructuring;

2. to remiss the restructured loan  difference (at the flat rate of 0.01 % for interest to be charged annually) between the rate of foreign currency loan on the date of restructuring and that set by the NBU on 01.01.2014, in proportion to the amount of loan instalments;

3. to fix the interest rate for a loan restructured at the official rate set by the NBU on 01.01.2014 and being not higher than that stated in the agreement for consumer loans in foreign currency, within three years since the date of restructuring;

4. restructuring consumer loans in foreign currency issued through pledging the property, provided that the outstanding principal does not exceed 2.5 million hryvnias, at the official rate for hryvnia against a foreign currency, set by the NBU on 01.01.2014;

5. to recognize the penalty (fee, charge), arisen due to improper fulfilment of liabilities by a borrower under the loan agreement on the date of restructuring, as uncollectible, and subject to be written off;

6. to replace the annuity, upon the borrower’s application, with a classical (standard) one;

7. to restrict the mortgage liability of  a borrower under the agreement for a consumer loan in foreign currency, except mortgage loan commitments (the notion “mortgage” is defined in the Law of Ukraine On Mortgage);

8. to prohibit transfer of the right to alienate to other financial institutions under the agreement for  a consumer loan in foreign currency without a prior proposal of debt redemption by a borrower, at expense of the alienation right, etc.;

9. to form a special committee at the NBU, according to the provisions of the memorandum;

10. to determine the rules of restructuring, based on the memorandum, as set out in the resolution of the NBU;

11. the memorandum is to come into force on the date of the enactment on amendments to the Tax Code of Ukraine, applicable to banks and natural persons.