The national Bank of Ukraine sent a letter to banks with a number of recommendations to work with borrowers who have lost income due to restrictive measures in connection with the pandemic coronavirus.
About it reports RBC-Ukraine with reference to data of the NBU.
Under the approved regulations, loans that will be restructured by the end of September 2020, will not be considered as such, are subject to certain signs of default.
According to the recommendations of the NBU, the restructuring shall be loans only to those borrowers who have experienced financial difficulties due to restrictive measures related to the pandemic, and are not able to timely service the loans
To initiate the restructuring of loans may as banks and their customers. Banks receive from customers-legal persons confirming the facts substantial temporary reduction in income or cessation of work, noted in the NBU.
The physical presence of customers in the Bank for restructuring is not required. The Bank determines the order of granting/issuing documents for restructuring, preferring the use of remote communication channels.
According to the recommendations of the NBU on restructuring of loans for medium and large businesses must be considered individually taking into account the latest financial statements, current financial status, of the vulnerability of sectors and enterprises in the current economic crisis and the prospects for their recovery.
“Given the expected medium-term economic consequences of the restrictive measures proposed under the restructuring be based on the assumption that restoration of solvency of the customers that were in financial distress, will not happen before the 3rd quarter of 2020”, — stated in the message.
Banks should not worsen credit conditions for the results of restructuring. Restructuring should not lead to an increase in the effective interest rate. Banks should not demand from customers any explicit or hidden fees for conducting the restructuring, the necessity of which is caused by circumstances of a pandemic, noted in the NBU.