NBU permits banks to award clients with benefits in servicing performing loans during quarantine period

The National Bank of Ukraine (NBU) has permitted banks to award clients of banks with beneficial conditions in servicing loans, which were performing as of late March 7, 2020, and according to the opinion of the regulator, this does not affect the capital of a bank, the central bank has said on its website.

"Customers are nervous and ask for real restructuring approaches. Get started now. There are examples of restructuring and applying the preferential regime in our legal acts, in particular, in Resolution No. 97. The approach can be individual in the case of corporate borrowers and standard in the case of retail," the press service of the NBU said, citing First Deputy Governor of the NBU Kateryna Rozhkova speaking during a meeting of the central bank with top managers of the largest Ukrainian banks.

According to the report, Rozhkova also said at the meeting that there should be a special approach both to industries that, due to quarantine, do not operate and completely lose revenue, as well as to the population, which also temporarily does not work as a result of the suspension of activities of some companies.

The first deputy governor of the NBU recalled that on March 17, the Verkhovna Rada at the initiative of the National Bank forbade banks to charge fines and penalties for late consumer loans from March 1 through April 30.

According to Rozhkova, the fight against panic over the coronavirus disease COVID-19 is extremely important in the current conditions, and therefore she recommends that banks refuse to apply any restrictions on customer operations.

"We are against restrictions. Instead of restrictions, there should be healthy communication with the client. Banks should also regularly fill up cashpoints with cash and ensure the work of branches in all regions, especially this concerns the largest banks," she said.

According to the report, the meeting with top managers of the largest Ukrainian banks in the conditions of quarantine was held in the format of a conference call. It was attended by all members of the NBU board, representatives of more than 50 banks, as well as banking associations.

Source: www.en.interfax.com.ua