Banks will not forgive debts: how Ukrainians will write off a mortgage and other loans because of war

Andriy Dubas, the chairman of the Association of Ukrainian Banks, told about what loans banks will write off and on what conditions, in an interview with Ukrainian Radio. According to him, bankers are well aware of the conditions in which many clients who took the loan stopped paying debt through the war. Bankers are still ready to cooperate with such clients, offering new conditions: but they will close the mortgage loan only if the housing that was in the mortgage is destroyed.

"If the apartment or house was in the mortgage and this housing is destroyed, then the banks will probably make concessions to the client and write off such credit. And then the state has to compensate for these funds for the bank," - said Andrey Dubas. But the vicious debtors who had problems with payments before the war should not hope for traveling abroad, where no one will know about their debts.

Although Ukraine is not part of the global information exchange system, there is such a system in the EU. "Even moving to another country, a person leaves his credit history. The whole world moves towards digitalization and transparency, Ukraine will be no exception. Therefore, your unpaid obligations can create very unpleasant stories in the future," - said the head of the Association of Ukrainian Banks Andriy Dubas. The new bill No. 7441-1 proposes to provide borrowers with two opportunities.

As for the pause in the payment of the loan, the project # 7441-1 provides that during the period of action in Ukraine of martial law and within three months after the day of its termination or cancellation, the borrower may apply to the bank and issue a suspension of payment of a monetary obligation on the loan, provided with real estate or car.

This can be done if the property is located in a temporarily occupied territory or in the area near hostilities, or is surrounded, and if the apartment or car is damaged as a result of hostilities. If the property is destroyed through the war, then the bill No. 7441-1 proposes to completely release the borrower from the obligation to pay the loan.

However, it is not about any object, but only if it is a real estate, the total area of ​​which does not exceed 140 square meters for the apartment, for an apartment building-250 square meters, which is the only place of residence of the borrower. Or if a single car whose operating engine operates does not exceed 2. 5 liters. In addition, according to the bill, they can only forgive the loan if there is no overdue debt under the contract.

Also, in the part of forgiveness (cancellation) of the debt, the law proposes to exclude from the list of taxable income the amount of debt of the taxpayer on the loan to be forgotten. In other words, if the bank forgives the loan today, the individual will be obliged to pay the tax income of individuals from the amount of forgiven debt. And if the project is adopted, then an individual has no obligation to pay such a tax, " - explained Igor Mlechko, governing partner asagroup.