On March 30, 2020, Verkhovna Rada of Ukraine passed a law prohibiting for the time of taking measures of preventing occurrence and spread of epidemics to raise interest rates on credit agreements. This applies in particular to the current quarantine associated with the spread of coronavirus disease (COVID-19).
In addition, the NBU Resolution, which has already entered into force, gives banks the opportunity to refrain from applying certain requirements to borrowers who found themselves in a difficult financial situation due to quarantine. This way, banking institutions will be able to be more tolerant to their borrowers in determining their degree of riskiness.
Unfortunately, this Resolution, although binding still leaves the right of the final decision to the bank, so in each case everything will depend on the negotiations of the parties. Although the mere fact of introducing quarantine as the ground for negotiating debt restructuring is already a positive signal for business.
This allows us to optimistically expect a national program of targeted credits to provide a salary fund with a preferential interest-free period, which according to the law must be developed and approved within one month by the Cabinet of Ministers of Ukraine and the National Bank of Ukraine.
Also, Verkhovna Rada of Ukraine has not overlooked banking institutions, for which the time limits for disclosure of the annual consolidated statements for 2019 have been extended.
If you have any questions or require further clarification, please contact the partner of Salkom Law Firm Pavlo Lukomskyi.