A memorandum on settling the restructuring of consumer credits pegged to foreign currency is now in effect in Ukraine.

The National Bank of Ukraine (NBU) said on its website that the memo was proposed by the banks which have the largest portfolio of individuals' credits in foreign currency and it foresees the restructuring of consumer credits in foreign currency with property used as collateral if the unpaid sum for the principal of the credits does not exceed UAH 2.5 million at the NBU's official hryvnia exchange rate against the foreign currency set as of January 1, 2015

"The liability of banks to observe the memo appears only if some conditions are met, and the major part of them has been observed," reads the report.

UPB, Alfa-Bank Ukraine, Bank Nadra, Bank Mykhailivsky, PrivatBank, Bank Grant, Region-Bank, Delta Bank, Fidobank, Platinum Bank, and Credit Agricole Bank signed the memo. Other banks with a large portfolio of individuals' credits in foreign currency are considering joining the memo in the near future.

The borrower is to submit a written application to the bank to start debt restructuring and register the application at the bank, and the borrower will receive a written response from the bank. If a bank refuses to restructure the debt or worse conditions are proposed, the borrower can submit a written application to the relevant commission of the public council which will soon be created.