Who is given vacation credit for the duration of the quarantine? Officially, the NBU

Lost income through quarantine and don't know what to do with the loan? Heard about the vacation credit, the abolition of fines, but I don't know if temporarily unable to pay the loan and interest?

Today, the NBU has provided recommendations to Ukrainian banks to work with borrowers during the quarantine.

"We asked the banks to treat with understanding to the difficult situation of borrowers to restructure their loans," - stated in the message of the national Bank.

 

What loans are subject to restructuring?

Loans which are regularly serviced by the borrowers until 1 March 2020.

 

Who can apply for vacation credit?

Preferential loan can get citizens and the business having financial difficulties because of the quarantine. All who fully or partially lost income and work. The business Bank should obtain confirmation of temporary reduction of income or cessation of work.

 

How it will look to restructure? I was allowed not to pay the body of the loan and interest?

We offered banks a few options. For example, you may be exempt from the payment of the loan for the duration of the quarantine with the relevant extension of credit. Also, you may be prompted to capitalization of interest payments. It all depends on your specific situation and arrangements.

 

Stop do banks charge interest?

They will continue to charge interest, because in parallel, they charge interest on deposits to its customers. However, you can pay after completion of quarantine. Today it is forbidden to impose fines and penalties for untimely service of consumer credit.

 

Can the Bank raise rates on loans within restructurizer?

No. Restructuring should not lead to an increase in the effective rate and the deterioration of other conditions. Also, banks should not demand commissions for the restructuring.

 

How to restructure? Will they call me?

Banks have to be active and to offer a preferential regime for citizens and businesses that lost income due to quarantine. But! If the Bank you still have not addressed, you can do it yourself. Explain the situation to the Bank and request a restructuring.

 

I was summoned to the Bank restructuring? But the country's quarantine!

On the restructuring, you can negotiate remotely. Do not go to the police. Communicate with the Bank online and take care of yourself. If you have an unsecured loan, your approvals for the restructuring can be a recording of a telephone conversation, application on the Bank's website, chat messages.

 

And what medium and large businesses?

It is individually. The Bank will review the application to consider the financial statements, the current state of the client and its vulnerability to the economic situation in the country. The crisis affected different sectors of the economy. Who hit more, at someone less.

 

Will not deteriorate if the state of the banks, if they will massively restructure loans?

For all loans that are restructured by the end of September 2020, are not subject to the signs of default. This means that such restructuring does not create a risk to banks ' capital.

Last but most important: vacation credit is not debt forgiveness. This postponement of their payment in time. Your credit is your responsibility to negotiate favorable mode.

Take the first step towards the Bank, don't wait until someone will solve this problem.