UNIAN
In view of the political and financial situation in the country in 2014, a memorandum has come into effect that provides for the restructuring of foreign currency loans of citizens by converting them into hryvnias, according to a report on the Web site of the National Bank of Ukraine (NBU).
According to the NBU, the memorandum was signed by the following banks: Ukrainian Professional Bank, Alfa-Bank (Ukraine), Nadra, Bank Mykhailivsky, Privatbank, Grant, Region-Bank, Delta Bank, Fidobank, Platinum Bank, and Credit Agricole Bank.
Other banks with large portfolios of loans to individuals in foreign currency are also considering becoming the signatories to the memorandum, the NBU said.
The NBU noted that for debt restructuring in accordance with the framework of the memorandum, a borrower has to submit an application to the bank and receive a written response from the bank. In the case of a refusal from the bank or the receipt of a decision on the application of conditions that are worse than those stipulated by the memorandum, borrowers are to send a written request to the commission via a public council that is to be established in the near future.
The National Bank noted that the memorandum provides for restructuring of mortgage secured consumer loans in foreign currency with a principal not exceeding UAH 2.5 million at the official exchange rate as of January 1, 2015 (about $158.500).
The memorandum introduces the concept of social housing (apartment 60 sq. meters and a house up to 120 sq. m.), and for foreign currency loans for the purchase of such property provided as a collateral, the banks have committed to write off up to 50% of the loan when carrying out the conversion into hryvnia. Regarding the loans for purchase of a property with a larger area, banks may offer to write off at least 25% of the loan after conversion.
The regulator notes that according to the terms of cooperation with the IMF, the negotiations between borrowers and banks regarding the restructuring of foreign currency mortgages are to be held voluntarily without state interference, including at the legislative level.