Ukrainian Finance Minister Viktor Pinzenyk is urging banks to restructure foreign currency credits granted to individuals and legal entities, reads an article in the Zerkalo Nedeli newspaper.
“A lot of citizens, companies and banks faced the problem of impossibility of repayment of currency credits because of the US dollar rate growth. The rate made their repayment almost impossible… The credits became backbreaking. Both partners found themselves at a deadlock. What is the way out of there?” the newspaper reads.
Standard in this situation withdrawal of pledge and its sale will not do now, Pynzenyk says.
“The instrument traditional for a bank in a normal situation does not work: to take the pledge (apartment) and sell it. Because there are no buyers. This is a unique, non-standard character of the situation. That is why non-standard decisions are also required,” the article reads.
In this connection, according to the minister, banks must offer to their clients a loan restructuring variant.
Among those variants Pynzenyk called early repayment of a part of the loan, or conversion of the remaining sum in the hryvnia at the exchange rate effective by the time of the credit contract conclusion.
In this situation both the borrower and the bank will suffer certain losses, but, as the minister put it, this will make it possible to minimize possible losses and will not entail any serious problems in banking industry.As Ukrainian News reported, earlier the finance ministry proposed that the central bank and
