You're reading: NBU, Finance Ministry to review IMF memo provisions on restructuring forex consumer credits

The National Bank of Ukraine (NBU) and the Ministry of Finance, in conjunction with the International Monetary Fund (IMF), intend in the near future to review the provisions of the memorandum with the IMF regarding the restructuring of consumer loans in foreign currency.

According to the National Bank’s website, NBU first deputy chairman Oleksandr Pysaruk announced this during a meeting with bankers with reference to the outcome of talks with the IMF on restructuring individuals’ mortgage loans in foreign currency using the mechanism proposed by the largest banks and the Independent Association of Ukrainian Banks.

“The National Bank and the Ministry of Finance jointly with the International Monetary Fund in the near future intend to review the provisions of the memorandum of economic and financial policies in the framework of implementing the EFF program and put appropriate changes into it, which would correlate with the achieved results of negotiations,” reads the report.

As reported, Ukrainian banks in conjunction with the Independent Association of Ukrainian Banks have developed a unified concept for restructuring foreign currency loans for housing purchases.

The restructuring mechanism, in particular, provides for the replacement of forex liabilities at the NBU rate on the date of restructuring plus forgiveness of part of the borrower’s debt with a single housing in the amount of not less than 25 percent, for borrowers with a single social housing (apartments of 60 square meters, houses of 120 square meters) – at least 50 percent.