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26.07.2017

The problem of foreing-currency loans

REFORMATION OF THE BANKING SYSTEM OF UKRAINE LASTS MORE THAN THREE YEARS - BANKS ARE CLOSED, THE RULES OF BANK TRANSACTIONS CHANGE.

It is tenth anniversary of existence of the problem of foreing-currency loans. This problem is still unsettled, in spite of different variants of decisions. It appears that neither our state nor banking system cares about borrowers, and it sounds like: “it was not necessary to take a foreing-currency loan".

Attempts in creating viable option have not been successful. Legislative initiatives remained on the level of ideas. Consequently, banks have the opportunity to get a few judicial decisions under one loan foreclosure, including interest rate and different penalties. A lot of examples, when on the same credit obligation there are few judicial decisions on debt enforcement, could be found in the state register of court decisions.

Members of Parliament paid their attention to this situation and, as a result, the Bill about restoration of consumers’ confidence to the banking system of Ukraine (Bill № 6721) has been presented last week.

The main statements of the Bill № 6721:

-the process of debt restructuring shall begin with a written application of the debtor. It shall be an obligation of the bank to restructure unfulfilled obligations during 1 month;

- nearly all types of loans are subjected to loan restructuring;

- loans, that has been sold to collectors, can be executed at the price of such sale;

- loans are proposed to be converted into the national currency according to the NBU rate of exchange on the day of conclusion of loan agreement. The exchange difference as well as penalties shall be written off by bank;

- no interest rate after debt restructuring shall appear;

- it shall be bank obligation to return surplus if an overpayment is set during the audit;

- if the size of debt cannot be covered by the cost of mortgage, an unpaid obligations shall be considered to be written off.

The mentioned herein list of the planned changes is not complete. Due to the possible economical effect for the banking system, this Bill probably shall not be accepted.

In our expert opinion, the debtors can’t count on a bill №6721. So, we are confident that the best decision shall be definitely to seek professional legal advice.

If you need our consultation, please send us your request - info@kodex.ua