Adopted the Law of Ukraine “On Amending Section IV ‘Final and Transitional Provisions’ of the Law of Ukraine ‘On Consumption Crediting’ (Regarding Credits Provided in Foreign Currency)”

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Adopted the Law of Ukraine “On Amending Section IV ‘Final and Transitional Provisions’ of the Law of Ukraine ‘On Consumption Crediting’ (Regarding Credits Provided in Foreign Currency)”

Information Department of the Verkhovna Rada of Ukraine Secretariat
Published on 13 April 2021, at 18:54

Adopted the Law of Ukraine No. 4475 “On Amending Section IV ‘Final and Transitional Provisions’ of the Law of Ukraine ‘On Consumption Crediting’ (Regarding Credits Provided in Foreign Currency)”.

The Law No. 4475 “On Amending Section IV ‘Final and Transitional Provisions’ of the Law of Ukraine ‘On Consumption Crediting’ (Regarding Credits Provided in Foreign Currency)” provides for mandatory restructuring on the basis of a Law (rather than on the basis of an agreement on restructuring), requires the recalculation of all payment obligations into hryvnias based on the official exchange rate established by the NBU on the day of restructuring and writes off the forfeit (fines, penalties) and the forfeit paid before the restructuring is credited to repay the body of the loan and interest on the loan.

The interest rate on the loan used before the restructuring is revised as follows: half of the Ukrainian index of interest rates on 12-month deposits of individuals in the relevant foreign currency and for periods when the index did not yet exist, half of the NBU refinancing rate. After the restructuring, the rate will amount to the Ukrainian index of rates on 12-month deposits of individuals in hryvnias. After the restructuring, the loan must be repaid within 10 years, the body of the loan will be required to be paid in equal monthly installments.

After the restructuring, a three-year ban will be imposed on:

- compulsory foreclosure on the debtor’s residential property to provide for settling the overdue obligation;

- registration by the creditor of mortgaged housing as the creditor’s property, sale of mortgaged housing to third parties on the basis of an agreement on satisfaction of the mortgagee’s claims or a relevant clause in the mortgage agreement;

- these rules are to be applied to all consumer credits granted in foreign currency, which have not been fully repaid.