Passed by Verkhovna Rada on April 13, the new law #1382 “On amendments to the legislative acts of Ukraine concerning customer foreign-currency credits” is set to help Ukrainians failing to meet their liabilities on personal credits following the military aggression of Russia.

“Customer and mortgage credits were outlawed in 2011, though a number of borrowers faced personal debts on the credits issued during the mortgage craze of 2006-2007. The military aggression of Russia and following occupation of some Ukrainian territories led to the substantial exchange rate fluctuations affecting many borrowers’ capability to meet their foreign-currency credits’ liabilities. The financial burden that stemmed for exchange rate issues can be rested exclusively on borrowers,” said the statement.

The regulation assumes that the early settled penalties fees will go to repay the credit principal and interest, while credit dues that came before debt restricting are to recalculated according to the interest rates in the respectful currency.

With the debt destructed, a credit must be paid off within 10 years with interest on in paid in Ukrainian hryvnas.

Who is eligible for debt restructuring scheme?

Individuals now can apply for debt restructuring on their personal credits providing (a) a credit was secured through mortgaging their homes (b) their residential property is their sole residence, (b) their home space is no bigger then 150 sq.m (for apartments) and 250 sq.m. (for houses), (c) they face default on their credit, and (d) as of January 1, 2014, their credit record listed no past due payments.

Zelensky also signed the bill “On Amending the Tax Code of Ukraine’ that makes Ukrainians exempt from personal income tax paying off due on personal foreign-currency credits , and the regulation “On Amending Certain Legislative Acts of Ukraine on Restructuring Foreign-Currency Credit Liabilities and Adaptation of Insolvency Procedures for Individuals” that eases bankruptcy procedure.