Today, during the meeting with the bankers, First Deputy Governor of the National Bank of Ukraine Oleksandr Pysaruk reported on the results of the International Monetary Fund talks on ways to solve the problem of restructuring mortgage loans to individuals in foreign currency, suggested in an open letter of appeal the day before by the banks that hold the largest number of mortgages and the Independent Association of Banks of Ukraine (hereinafter - IABU).
According to bankers and IABU, the most acceptable and civilized way of solving this problem is to jointly develop conditions that will satisfy all parties. Such consolidated bankers’ position provided the basis for the draft law On Restructuring the Ukrainian Citizens’ Liabilities under FX Loans Extended for Purchasing the Single Residence (Mortgage Loans). The document combines mechanisms of all existing memoranda for restructuring consumer loans in foreign currency.
The International Monetary Fund previously supported the proposal of the banking community to resolve the issue with the said draft law, since it was initiated by the banks themselves demonstrating their good will and desire to solve the problem of foreign currency loans to individuals this way.
"The National Bank of Ukraine is fully supportive of such solution, because it is based on real mechanisms of protection and support of currency borrowers in Ukraine, primarily of low-income and socially disadvantaged ones. Without excluding the possibility or limiting the right of the banks and their customers to set the contractual conditions for restructuring foreign currency loans, the draft law provides for clear and transparent conditions for the settlement of the problem", - said Oleksandr Pysaruk.
Oleksandr Pysaruk also added that in the near future, the National Bank of Ukraine and the Ministry of Finance together with the International Monetary Fund will review the provisions of the Memorandum of Economic and Financial Policies within the Extended Fund Facility program and amend them appropriately in line with the results of the negotiations.
In its turn, the Executive Director of the Independent Association of Banks of Ukraine Olena Korobkova noted the following: "The suggested approach to the problem of FX loans to individuals in Ukraine is balanced and on the one hand, will solve a conflict situation, which is painful for some Ukrainian citizens and which is unfortunately used by various political forces for undermining our country’s economic stability, and on the other hand, will save the banks from worsened or lacking solvency."
As is mentioned by the banks’ representatives in their appeal, the draft law defines simple and transparent mechanisms to mortgage loans restructure. The Draft Law is socially oriented as it provides differentiated approach for identifying the share of debt subject to forgiveness considering the category of the borrowers and the property that was purchased with the borrowed funds. The Draft Law introduces special terms of loan liabilities restructuring to those categories of citizens, to whom the state shall guarantee additional support, and also to the borrowers, who protect independence, sovereignty and territorial integrity of Ukraine by taking part in the anti-terrorist operation.