18.03.2022 Press Release
To minimize the negative impact of the military aggression of the Russian Federation against Ukraine, the Executive Board of the Deposit Guarantee Fund (DGF) adopted Decision No. 179 of March 14, 2022, which introduces the uniform conditions for the borrowers of banks being liquidated by the DGF, namely for the individuals, sole traders and corporates, regardless of the form, type, purpose of the loan, etc. (hereinafter referred to as ‘the payment holiday’).
The payment holiday period began on February 24, 2022, when the martial law was imposed in Ukraine according to Decree of the President of Ukraine No. 64/2022 of February 24, 2022 ‘On the Imposition of Martial Law in Ukraine’ approved by Law of Ukraine No. 2102-IX of February 24, 2022. The payment holiday will last for another three months following the end of martial law in Ukraine, but at least until June 30, 2022. However, the payment holiday duration may be changed by an additional decision of the Executive Board of the DGF.
‘During the martial law, when the Ukrainians, despite the huge losses are defending their country as one man, our priority is to protect the rights of the customers of the banks being liquidated by the DGF by all lawful means. About 90% of the assets of the banks being wound up by the DGF are the loan portfolios. This is a large number of borrowers – ordinary citizens and business. We have introduced a fixed interest rate of 0.0001% per annum for immediate and overdue debts, which is accrued from the date of this decision in accordance with the effective terms of the agreement. What is more, the borrowers will not be subject to any penalties. At the same time, the commission rates provided for in the loan agreements and bank account agreements are set at UAH 0.01,’ – said Olha Bilay, Deputy Managing Director of the DGF.
Ms. Bilay emphasized that the payment holiday does not mean debt forgiveness. It is a postponement of the borrower’s loan obligations during this difficult period.
Along with that, if the loan repayment date falls on the payment holiday, it is set on the date following the end of the payment holiday. However, the borrower is entitled to early repayment during the payment holiday in full or in any part. The order of loan repayment during the payment holiday period does not change.
In order to create favorable conditions for further fulfillment of obligations, a single schedule is established for all liabilities, established during the payment holiday – within six months from the end of the payment holiday in the amount of borrower’s overdue debt as of the date when the payment holiday was imposed and the amount of payments in accordance with the schedule of loan repayment during the payment holiday, in equal parts.