Who will have the right to default on wartime loans without penalty?

The war significantly changed Ukraine’s financial situation, especially for borrowers. The question of loans under martial law causes many misunderstandings: some believe that debts are “frozen”, others believe that banks are obliged to write them off. In fact, the situation is more complicated, as attorney Ihor Yasko explains, outlining the bank’s obligations and what remains in force under the law.

First, it is essential to understand that war is considered a force majeure circumstance, which may lead to the cancellation of late fines, provided confirmation is obtained from the Chamber of Commerce and Industry. This opens up the possibility of relief from penalties and other sanctions, but does not relieve the debt itself. If the borrower cannot make payments due to evacuation or lack of access to banking services, he has the right to suspend payments. In other cases, the debt will grow only due to the principal debt and interest, if this is provided for in the agreement.

According to the current rules, from February 24, 2022, until the end of the war, banks are not permitted to impose new fines. All charges made after this date are subject to cancellation. If you notice suspicious charges on your statement, you can submit a written claim to the bank; if it is refused, you can file a complaint with the National Bank of Ukraine or file a lawsuit in court. This indicates that any penalty for the period of war is illegal.

However, it is worth noting that the loan’s interest is not automatically written off. Their cancellation is possible only with the agreement of the banking institution or within the framework of special programs. In some cases, a complete write-off of the debt is possible if the collateral has been destroyed or if the bank recognizes the loan as hopeless.

There are special rules for military personnel: during service and within 90 days after demobilization, they are exempt from the obligation to repay loans and fines.

Regarding account blocking, it is worth remembering that banks have broad powers in financial monitoring. This can apply to both debtors and suspicious financial transactions. If the account was “frozen” without explanation, it is recommended to contact the bank; if you receive no response, file a complaint with the National Bank.

Don’t forget the importance of staying informed about news and updates on consumer rights and financial security during wartime.