Deposit guarantee fund designs conditions for restructuring of debt on individuals' mortgage loans

The Individuals' Deposit Guarantee Fund has approved the conditions for restructuring debts on mortgage loans of persons to banks which are under liquidation, Deputy Managing Director of the Individuals' Deposit Guarantee Fund Svitlana Rekrut told reporters on Thursday.

She said that the conditions for restricting of debt on individuals' mortgage loans have been submitted to the Justice Ministry for registration.

As part of the restructuring program, the principal amount of the loan will primarily be repaid. The interest rate is set at 0.01% per annum. After the signing of the restructuring agreement, the borrower will have to pay at least 10% of the amount of loan debt calculated as of the date of its circulation with respect to restructuring.

"Developing the conditions for restructuring, it was important for us to find a balance between the interests of borrowers and bank creditors... Today, the level of servicing of mortgage loans varies, as they say, within a statistical error of 2-3% .We expect that the approval of the restructuring terms will help increase this figure," Rekrut said.

Director of the asset management department of the fund Olha Bilai told journalists that this restructuring program will be available only to individual clients of banks undergoing liquidation, who are in arrears under loan agreements secured by real estate or land.