The National Bank of Ukraine approved the new rules for calculating the total cost of the credit to the consumer and the annual percentage rate of charge under a consumer credit agreement in line with the Law of Ukraine On Consumer Credit, which comes into force on 10 June 2017.
In particular, the NBU established the methodology for the calculation of the total cost of the credit to the consumer in line with the Law of Ukraine On Consumer Credit with regard to the elements of the total cost of the credit to the consumer. The total cost of consumer credit includes fees which the consumer is required to pay for services provided by a creditor or a credit intermediary, where appropriate.
In addition, in accordance with this law, the NBU designed the methodology for calculating the annual percentage rate of charge under a consumer credit agreement based on EU Directive 2008/48/EC on credit agreements for consumers. In particular, the formula used for the calculation of the effective annual interest rate under the consumer credit agreement is fully consistent with EU legislation. The annual percentage rate of charge is calculated in accordance with a uniform mathematical formula for the calculation of charges payable under the credit agreement. Therefore, using the methodology for the calculation of the annual percentage rate of charge based on EU Directive 2008/48/EC ensures a uniform approach to calculating the total cost of the credit to the consumer and enables consumers to compare the terms of different offers and choose the most appropriate option.
Both calculation methodologies are introduced by NBU Board Resolution No 49 On Approval of the Rules for Calculating the Total Cost of the Credit to the Consumer and the Annual Percentage Rate of Charge under the Consumer Credit Agreement, which comes into force from 10 June 2017.
With the entry into force of this resolution, the Rules Governing the Provison of Information by Ukrainian Banks to Consumers regarding Lending Terms and the Total Cost of the Credit approved by NBU Board Resolution No.168 of 10 May 2007 shall become invalid.