NBU recommends banks restructure loans to borrowers

To carry out the restructuring, the borrowing legal entities must prove a decrease in income or a work stoppage.

The National Bank of Ukraine has asked private banks to restructure loans to borrowers who are currently experiencing financial difficulties due to the introduction of restrictive measures and are unable to service loans. This was announced on Monday, December 21, according to the NBU press service.

The corresponding changes were adopted by Board Resolution NBU No. 160 dated December 21 “On the approval of the Rules for the activities of Ukrainian banks in connection with the establishment of quarantine and the introduction of restrictive measures against the epidemic to prevent disease.

As noted in the document, banks are allowed “not to extend certain indications of default to loans that will be restructured”: until April 30, 2021 (inclusive) for individual debtors; and as of May 31, 2021 (inclusive) – for debtors-legal persons.

“The restructuring should, on the one hand, mitigate the impact of the crisis on the financial situation of the borrowers and, on the other, not create risks of loss of capital by the banks. The restructuring should not worsen the conditions for the borrower nor lead to an increase in the effective interest rate. Banks should not impose restructuring fees. ” , – says the message.

Additionally, the NBU recommends remote restructuring.

In addition, banks can: not aggravate the class of the borrower, taking into account the information of the credit registry, until April 29, 2021; not to re-evaluate and verify the status of the pledged property, until March 30, 2021; Do not take into account, when evaluating the debtor-budgetary institutions, the fulfillment of the budgetary indicators for 2020 and 2021, until January 4, 2023.

The decision is published on the regulator’s website and takes effect on December 22, 2020.

We also previously reported that the NBU considers the 2021 budget too optimistic. With a high degree of probability, the budget will need to be adjusted next year, according to the central bank.

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