Governor of the National Bank of Ukraine said that the banking community had responded promptly to the proposal asking banks to provide assistance to those borrowers that had been conscripted into the Armed Forces of Ukraine pursuant to Presidential Decree on partial mobilization, dated May 6, 2014.

“It should be noted that representatives of the banking community have responded promptly to an appeal by the National Bank of Ukraine urging banks to devise measures to ease credit conditions for the military men defending our country,” said Mr Stepan Kubiv.

According to him, 120 banks have submitted reports to the central bank. According to information provided by banks the borrowers conscripted into the Armed Forces of Ukraine have already requested assistance from 14 banks. 73 banks have not received any requests from the borrowers.

The Governor of the National Bank of Ukraine added that 28 financial institutions had approved programs to assist military men. 8 banks are working on these programs. Another 9 banks informed the central banks that they would consider appeals filed by the borrowers conscripted into the army on case-by-case basis.

More detailed information on the procedure for obtaining assistance from banks can be found on the websites of banks.

“I am delighted to see that when Ukraine is going through a strained period banks display patriotism and demonstrate social responsibility. Such a policy pursued by these banks will help cement public confidence in the domestic banking system,” noted Mr Stepan Kubiv.

By the way, if signed, the Law amending some legislative acts of Ukraine with regard to the improvement of defense and mobilization issues during the mobilization period, would allow the military men to receive benefits through easing credit conditions. That means that banks will not impose punitive penalties for those borrowers who have failed to meet their debt obligations. In addition, banks will not charge interest rates on loans. The borrowers conscripted into the army may apply to the bank that has provided loans to them.

The National Bank of Ukraine has earlier called on banks to explore the possibility of revising the terms of loan agreements concluded with individuals conscripted into the army and devise schemes designed to help military men repay the principal and accrued interest. The central bank has also urged banks not to impose punitive penalties for borrowers' failure to meet their debt obligations in a timely manner.