Rada adopts bills on protection of Ukrainians who have debts on FX loans
The Verkhovna Rada of Ukraine at a session on Friday adopted at first reading bills to protect Ukrainians who have debts on loans in foreign currency from excessive appetites of creditors (No. 4475; No. 4398, No. 4399).
Bill No. 4475 was supported by 265 MPs, bill No. 4398 by 260 MPs, and bill No. 4399 by 256 MPs.
Bill No. 4475 proposes to restructure without fail consumer loans provided in foreign currency, subject to the availability of a loan with the borrower at the time of granting the loan to the lender.
Obligations subject to mandatory restructuring are considered restructured from the date of entry into force of the bill, thus, the day of entry into force is considered the day of such restructuring.
Bill No. 4398 proposes to oblige the Deposit Guarantee Fund no later than 30 days before the publication of the announcement of open tenders, to offer the borrower to repay the debt in an amount no less than the assessed value of the asset.
The bill also proposes to remove housing, which is the only place of residence of the debtor's family, from the liquidation estate, if it does not exceed 60 sq. m, or 13.65 sq. m for each family member of the debtor for an apartment or 120 sq. m for a residential building.
In addition, according to the text of the bill, a debtor living in such housing, if his income is insufficient to meet the conditions of restructuring, by the decision of the economic court can pay the minimum amount of monthly implementation of the restructuring plan.
According to the text of bill No. 4399, it is proposed to allow banks, which restructure loans of individuals in foreign currency secured by mortgages, not to adjust pretax profit or loss for the amount of winding up the reserves with balance sheet value in relation to such loans and the amount of partial forgiveness of the loan subject to restructuring.