In order to meet the requirements of the Law of Ukraine "On the establishment of the Free Economic Area "Crimea" and peculiarities of the economic activity on the temporarily occupied territory of Ukraine" (hereinafter – the Law), the National Bank of Ukraine Board passed Resolution No. 727, dated November 19, 2014 "On amendments to the Regulation on the procedure for making and using provisions against possible losses arising from asset-side banking operations by Ukrainian Banks" (hereinafter – Resolution No. 727).

The Law establishes that for the duration of temporary occupation forcibly displaced persons are exempted from payment of the principal and accrued interests on mortgage loans if they are secured by real estate located (registered) on the territory, which was temporarily occupied after entering into a mortgage agreement.

By virtue of Resolution No. 727, Chapter 1, Section II of the Regulation on the procedure for making and using provisions against possible losses arising from asset-side banking operations by banks approved by NBU Board Resolution No. 23, dated January 25, 2012 (as amended) has been amended to grant banks the right to classify the above-mentioned mortgage loans using the quality category determined by the bank as of the date of commencement of temporary occupation.

Resolution No. 727 is intended to mitigate the adverse impact of the temporary occupation of part of Ukraine's territory on the financial standing of banks-creditors.