Some Ukrainians may be written off debts on loans – who are affected by the changes

Accrual of interest to Ukrainians under consumer loan agreements may be terminated or cancelled. The corresponding draft law No. 7437 has already been registered in the Parliament.

As reported on the website of the Verkhovna Rada, interest will not be charged during martial law and the state of emergency and within 30 days after its completion.

We are talking about credit funds that bank customers received in Ukraine in order to buy real estate or vehicles, and this property was destroyed as a result of the military aggression of the Russian Federation or located in the temporarily occupied territory.

Mortgage Law Changes

Innovations suggest that no interest will be charged on the destroyed property until the end of the war under the main loan agreement. Destroyed property means objects that cannot be restored or restoration requires overhaul or reconstruction.

At the same time, banks and other financial institutions will be advised to attribute to the body of the loan the interest paid before the amendments to the draft law No. 7437 come into force. In this way, we intend to support Ukrainians and businesses who bought a car or housing on credit and lost it during the war, and the loan is required to continue to pay.

In March, people’s deputies supported changes to the Tax Code, which freed citizens from legal liability for late loans. Now they are trying to prevent the prosecution of people who cannot pay interest.

Lawsuits

According to experts, the mortgage is terminated if the building is destroyed and the mortgagor has not restored it. But debt does not disappear, so banks often require people to fulfill the terms of the contract.

Lawyer Victoria Lisova stressed that lawsuits continued in early April over housing destroyed during the war. Some cases reached the appellate courts or the Supreme Court.

She added that the courts often try to separate the payment of a loan and the receipt of compensation for destroyed property into two separate processes. Thus, the judiciary recognizes that a loan must be paid for the destroyed property and, in parallel, the issue of obtaining compensation for the lost property must be resolved.

Earlier, “Today” explained in detail how to issue compensation for destroyed housing, who can receive it, and who can be denied. At the same time, containers for migrants who lost their property during the war were shown in Bucha – they are made from recycled materials.