Central Bank of Ukraine clarifies credit holidays issue

Credit holidays will be given to those enterprises that have stopped, suspended or substantially limited their work, resulting in a loss of income. This was stated by the first deputy head of the NBU, Yekaterina Rozhkova

“It is clear that those who completely or partially ceased their activities require a preferential treatment, or as we call it a credit holiday. How it will work. Those enterprises that have stopped, suspended or substantially limited their work, those citizens who temporarily lost income as a result of these actions, that is, they are now in quarantine, or on unpaid vacations, or that must receive a credit holiday. That is, deferment of payment of interest on the loan and deferment of payment of the main debt, ”said Yekaterina Rozhkova.

She added that it was a matter of deferring, and not canceling, debts, because banks operate on borrowed funds.

“We do not know how long quarantine restrictive measures will last. But if they continue, which would not be desirable, we say that for the quarantine period, everyone who has suffered are granted a delay in servicing loans. But after the quarantine is over, banks will already begin to work with the business on how to do the restructuring. Why - because maybe the business will need not only the quality of the delay, but maybe the business will need some working capital. And these can no longer be automatically done, ”said Yekaterina Rozhkova.