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Failure to Make Loan Repayments to Credit Unions Due to Martial Law Will Not Be Deemed Overdue Debt

Failure to Make Loan Repayments to Credit Unions Due to Martial Law Will Not Be Deemed Overdue Debt

The National Bank of Ukraine has resolved the problem of nonperforming loans owed by credit union members.

From now on, credit unions are allowed not to take into account the number of days past due under loan agreements, starting 28 February 2022 and within 60 calendar days after martial law is suspended or lifted. 

At the request of credit unions and their associations, the grace period for past due loans will commence on 28 February 2022. The measure is required because of how credit union software operates. Loan loss provisions will be created depending on the number of days overdue under loan agreements as of the the last business day of every month. Such a software operation mode complies with the laws of Ukraine. It is currently difficult or completely impossible to manually modify the software or adjust the reporting for quite a few credit unions that are located in the areas of active hostilities.

The changes were approved by NBU Board Resolution No. 61 On Amendments to NBU Board Resolution No. 39 dated 6 March 2022 dated 23 March 2022.

The Resolution is effective 24 March 2022.

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