Credit holidays are introduced in Ukraine

Ukraine introduces credit holidays. They will last during martial law and 30 days after it.

About it informs National Bank of Ukraine.

Now, in the event of a delay, the borrower is released, in particular, from the obligation to pay the lender a penalty (fine, penalty fee) and other payments, the payment of which is provided for by the documents.

In addition, in case of non-fulfillment of obligations under a consumer loan agreement, it is prohibited to increase the interest rate for using the loan, except when it is specified in the agreement.

The penalty (fine, penalty) and other payments, the payment of which is provided for by the consumer loan agreement, accrued inclusively from February 24, 2022, are subject to write-off.

“It is important that the new rules do not provide for the abolition of interest on the use of credit funds. Such an accrual is lawful on the part of the creditor. Credit holidays are a deferral of debt payment, not its forgiveness. Also, credit holidays are the right of the creditor, and not his obligations. Therefore, we recommend agree directly with the lender on credit holidays,” the NBU stressed.