The NBU explained the mechanism of “vacation credit”

Banks continue to charge interest on loans, but paying them after quarantine.

В НБУ разъяснили механизм «кредитных каникул»

This explanation about the “vacation credit” gave the Deputy head of the National Bank (NBU) Kateryna Rozhkova, the League.

“Preferential treatment is not forgiveness of debt. This postponement of the payment of principal and interest for borrowers whose financial condition has deteriorated,” she said.

Rozhkova noted that banks continue to charge interest for loans, as at the same time they charge interest on deposits and pay them.

“That is, until the action is quarantine, the interest is charged, but they can pay you after the completion of the quarantine. Preferences need to negotiate with the Bank. And it should be done remotely. You need to provide proof of job loss, significant reduction of income or cessation of business”, — concluded the Deputy head of the NBU.

The NBU has developed mechanisms to reduce the credit burden on business and the population in connection with the introduction of quarantine in the country.

Business representatives believe the government taken steps to support business insufficient and urged to enter the real tax breaks, interest-free or soft loans to pay the salaries and budget of compensation for the loss.