Financial sector news

The National Bank of Ukraine and PrivatBank explained in a comment to the publication Ekonomichna Pravda how the issue of credit obligations for military personnel who are unable to make monthly payments due to mobilization is currently being resolved.

According to the NBU, any changes to the terms of a loan agreement—from deferral of payments to revision of the interest rate—are possible only by mutual agreement between the client and the bank. If the borrower is unable to service the debt, the law allows for restructuring — changing the terms of the agreement with a new repayment schedule (Article 17 of the Law “On Consumer Lending”).

Special benefits apply to military personnel: they and their families are not charged penalties, fines, or interest for late payments, except for loans for housing, cars, or energy equipment. In such cases, the state or a third party may cover the interest. To take advantage of the benefit, you need to contact the bank and provide documents confirming your service.

PrivatBank adds that military personnel can set up automatic payments, authorize a relative to make payments, or restructure their debt to reduce their financial burden. During martial law, no penalties are charged, and for certain loans issued before August 2022, the interest rate may be reduced to 0.001%. For newer loans, the bank may adjust the monthly payment — for example, halving it once a year.

Despite the fact that mobilization is not considered an “insurmountable circumstance,” PrivatBank has announced its willingness to accommodate customers who submit a restructuring application in a timely manner.

Thus, military personnel who are unable to service their loans as usual can negotiate with the bank to defer or revise the terms and conditions — the main thing is to apply in a timely manner and provide supporting documents.