On July 21, 2015, the Board of the National Bank of Ukraine adopted Resolution No 467 On Approval of the Guidelines to be followed by banks  when handling debtors (individuals) facing/ or might face financial difficulties (hereinafter – the Guidelines).

The Guidelines are intended to guide the negotiating process between debtors facing financial difficulties and banks, inducing them to engage in a constructive dialogue to negotiate a compromise solution to the debt-restructuring problem, which would be acceptable to both parties.

The implementation of the Guidelines in practice by banks is intended to resume individuals’ payments on loans and improve debt-servicing capacity of the debtors that have seen a reduction in their income in the wake of the economic crisis.

By following the provisions set out in the Guidelines, banks will be able to reduce the stock of non-performing loans, prevent the generation of non-performing loans, and consequently the increase in operational risks.

This document is recommendatory, and its provisions can be used by banks to streamline their own regulatory framework.

The Guidelines have been developed with technical assistance from the IMF, drawing on conventional banking practices and international practices. Weaving the Guidelines into banking practice represents a step forward toward the creation of civilized, fair and clear rules governing the negotiation process between banks and borrowers in the process of settling relations arising from loan agreements.  

Having developed the Guidelines, the National Bank of Ukraine met the requirements of another paragraph of the Memorandum of Economic and Financial Policies entered into between Ukraine and the International Monetary Fund.