Possible restructuring of the loan.
In terms of quarantine of the Ukrainians is in isolation, devoid of their usual income, reports the Chronicle.info with reference to Country.
This is especially alarming for those who pay the loan. Recently, however, the Council has introduced vacation credit in connection with the coronavirus. Penalties and interest for late payment until cancelled.
However, these measures may not be enough. After all, the people who lost their jobs due to the quarantine is unlikely immediately after its cancellation to start to repay the loans.
So many are concerned with another question — is it possible to restructure the debt? In other words — to stretch it on terms or even to reduce?
Today, the national Bank published on its website an appeal to the banks where told to delay for Ukrainians payments on loans.
However, the right to such restructuring will have not all. And only by conscientious borrowers as well as those who could prove that he had suffered from quarantine or epidemic. That would be very difficult.
“Country” is understood in the teachings of the NBU.
Questions and answers about loans
Today on Facebook, the national Bank published a questions and answers about how to not pay credit to the quarantine.
1. What loans are subject to restructuring?
Loans which are regularly serviced by the borrowers until 1 March 2020.
2. Who can apply for vacation credit?
Preferential loan can get citizens and business that have financial difficulties because of the quarantine. All who fully or partially lost income and work. The business Bank should obtain confirmation of temporary reduction in income or termination of employment.
This item is the most controversial — given that the majority of the Ukrainian business works in the shadows. Rarely shows real income.
3. Looks like restructuring? I was allowed not to pay the body of the loan and interest?
National Bank offered banks several options. For example, you may be exempt from the payment of the loan for the duration of the quarantine, with a corresponding lengthening of the loan. Also, you may be prompted to capitalization of interest payments. It all depends on your specific situation and arrangements.
4. 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.
5. Can the Bank raise rates on loans within the framework of the restructuring?
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.
6. 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.
7. I was summoned to the Bank restructuring? But the country’s quarantine!
On the restructuring, you can negotiate remotely. Don’t go to the police. Communicate with the Bank online and take care of yourself. If you have an unsecured loan, your agreement on the restructuring could be a recording of a telephone conversation, application on the Bank’s website, a message in chat.
8. 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 had different effects on sectors of the economy. Who hit more, at someone less.
9. Will worsen 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.
How to achieve restructuring
As mentioned above, it is assumed that the Bank needs to be active and to offer a preferential regime. However, if the proposal did not apply to you, call the Bank yourself. Everything can be done remotely, insists the national Bank.
The business Bank should obtain confirmation of temporary reduction in income or termination of employment. The reasons may be:
- the loss of a major source of income of the borrower because of the quarantine
- the sharp fluctuation in exchange rates on foreign currency loans.
The main documents that are needed for restructuring
- Copy of passport of the borrower (the original must be produced at the time of signing of the revised Treaty);
- The documents confirming a good reason for restructuring;
- Income statement, statement of accounts or other supporting document solvency;
- Extract from employment record book, reference from employer or a certified copy of the contract of employment.
Collecting documents for the restructuring, the debtor should fill an application to receive services.
The NBU did not explain how all these stages to be done online. I guess once will have to visit the Bank and sign a new agreement.