PrivatBank (Kyiv) intends on November 26 to launch a preferential program for restructuring clients’ debts under 294,000 contracts in the field of retail, small and medium-sized business, as well as consumer lending for Hr 48.5 billion, offering to write off most of the debt, deputy chairman of the board Halyna Pakhachuk has said.
“We offered concrete options in our restructuring, namely the renegotiation of terms, the extension of the term to 36 months, the conversion of debt obligations from foreign currency to hryvnias, conditional forgiveness of interest, fines and penalties, and others,” she told reporters in Kyiv.
Pakhachuk clarified that of this amount of debt formed in mid-December 2016, some Hr 12.3 billion is the principal of the loan and interest, and Hr 36.2 billion is penalty and commission of the bank. Small and medium businesses account for about 8,300 contracts for Hr 2.2 billion, consumer lending for 4,600 contracts for Hr 17.3 billion, while and the rest is retail business.
According to her, the proposed restructuring rates are 13-16% per annum for debts in the hryvnia and 0.01 percent for debts in U.S. dollars and euros, which will be converted into the hryvnia on the date of the first payment.
The banker noted that the best conditions with a minimum rate and maximum forgiveness of obligations will be offered when paying off a debt in one payment. All other options require an advance of at least 15 percent of the amount of restructuring, and depending on its term and type of business segment 47 options of restructuring will be offered.
