The Committee on Finance, Taxation and Customs Policy at the
meeting considered five draft laws concerning the settlement of the issue of
loans taken by citizens of Ukraine in foreign currency on the security of
housing. The results of the working group was presented by MP Victoria
Kinzburska and informed that the draft Law No. 4475 "On Amendments to
Section IV 'Final and Transitional Provisions' of the Law of Ukraine 'On
Consumer Lending' (for loans granted in foreign currency)" provides for
rapid and simultaneous mandatory restructuring for all foreign currency loans
secured by housing.
According to her, it is proposed to convert currency liabilities into hryvnia and change interest rates and loan repayment terms. The date of restructuring will be the date of entry into force of this bill. At the same time, creditors will be given an additional 30 days to make all the necessary calculations. The MP informed that the working group had developed a number of proposals to finalize the bill in preparation for the second reading. In particular, it is proposed to clarify the requirements for consumer loans in foreign currency, which are subject to mandatory restructuring. It is noted that the restructuring should be carried out at the rate calculated as the average value between the exchange rate of the relevant foreign currency set by the NBU on the day of the contract and the rate set on the day of the restructuring. It is also proposed to resolve the situation with previously adopted court decisions on the forced recovery of property, which served as collateral for a foreign currency loan.
Two more bills aimed at resolving this issue were considered
at the meeting. The draft Law No. 4204 "On Restructuring Liabilities for
Foreign Currency Loans and Amendments to Certain Legislative Acts Concerning
the Settlement of Foreclosure on Mortgage Property" proposes to establish
the procedure and conditions for restructuring the obligations of individuals -
borrowers on loans obtained in foreign currency for the purchase of housing or
land for housing construction. It is proposed to determine the debt on the loan
at the level of the total debt of the borrower on the loan with the body and
interest, but not more than the market value of housing - the subject of the
mortgage. The borrower will be able to apply for restructuring within six
months from the date of entry into force of this law.
Another draft Law No. 4557 “On Restoration of Violated Rights of Consumers of Financial Services” proposes to correct the error by changing the currency of fulfillment of loan obligations to the national currency of Ukraine, and determines the recalculation procedure.
Representatives of the National Bank of Ukraine and the Association of Banks of Ukraine said they did not support any of the three proposed bills because they violated the principles of freedom of contract and equality of arms.
Representatives of banks called for debt restructuring under the terms of the Bankruptcy Code.
The MPs drew attention to the need to settle the issue of arrears on foreign currency loans for migrants from the temporarily occupied territories.
Representatives of the public stressed the need to ensure the transparency of the restructuring procedure and determine the value of the mortgaged housing.