Loan repayment holidays for borrowers of banks in liquidation extended for another year

The Deposit Guarantee Fund of Ukrainian banks has extended the loan repayment holidays for borrowers of banks in liquidation for another year - until August 31, 2024. This information is included in the decision of the Fund's Executive Directorate No. 1040 dated August 24.

According to the new conditions set for individual borrowers of such banks, the interest rate under the loan agreement will be 0.001% per annum, and the amount of fees stipulated in the loan agreements will be only 1 kopeck. These terms will be effective for the borrowers starting from the month following their acceptance of these terms.

Repayment of the debt must be made on a monthly basis starting from the month of joining these terms and conditions and must comply with the schedule specified in the loan agreement. The minimum monthly repayment amount is not less than UAH 10 thousand for loans secured by a mortgage and UAH 5 thousand for loans obtained with credit cards, provided that the debt at the time of joining the repayment terms was more than UAH 100 thousand. For other loans, the minimum monthly repayment amount is UAH 1 thousand. If the borrower is a military serviceman who served after February 24, 2022, he or she will not be charged interest and fees, regardless of whether the above conditions are met.

In order to take advantage of these preferential repayment terms, borrowers do not need to enter into additional agreements or restructuring agreements. It is enough to start paying the monthly amount specified above.

However, it is worth noting that if the borrower violates the repayment schedule three times, the preferential terms may be canceled and the borrower will be obliged to pay under the normal loan terms again starting from the next month.

However, if the borrower repays all the overdue debt by September 1, 2024, its preferential restructuring will be extended until the loan is fully repaid.

It is worth recalling that the Deposit Guarantee Fund first set restructuring conditions for borrowers of banks in liquidation on 14 March 2022. These conditions were extended until the date three months after the end of martial law in Ukraine, unless the DGF decided otherwise. However, in September 2022, it was announced that these conditions would be in effect only until September 2023.