Buy Back Your Own Loan for 1 Hryvnia: New Rules Proposed for Borrowers of Banks Taken Over by the State

Millions of Ukrainians lost their jobs, businesses, or a significant portion of their income after the start of the full-scale war, which has made it impossible for them to fulfill credit obligations taken before February 24, 2022. This especially applies to borrowers of banks whose assets later came under the control of the Ukrainian state. For such citizens, it is proposed to create a separate legislative mechanism that will allow reviewing credit obligations, determining the real amount of debt, applying preferential restructuring, and providing other ways of fair settlement.

The relevant initiative is set out in petition No. 41/010393-26ep, whose author calls on the Cabinet of Ministers to introduce special rules for conscientious borrowers of banks whose assets have come under state control.

Why change the loan repayment rules

The petition states that the war caused millions of citizens to lose jobs, businesses, incomes, and the ability to fulfill financial obligations that arose before the start of the full-scale invasion.

At the same time, Ukraine, through special procedures, gained control over certain banks and their assets, including citizens' loan portfolios.

The author emphasizes that citizens who took loans from such banks could not influence who owned them, why the status of the financial institution changed, or what decisions the state made regarding it. Therefore, in his opinion, a special legislative mechanism should be created to regulate such loans.

Who the new mechanism is proposed for

The document states that the new approach is proposed not for all borrowers, but only for citizens who:

• took loans to develop their own business, create jobs, and support the Ukrainian economy;
• conscientiously fulfilled their obligations before the war or before other circumstances beyond their control arose;
• lost the ability to repay loans due to the war, loss of income, business closure, health deterioration, or other difficult life circumstances;
• did not commit fraudulent actions.

It is specifically emphasized that the proposal does not suggest completely releasing citizens from fulfilling credit obligations. It is about creating fair rules for people who acted in good faith but can no longer service loans due to the war and other circumstances beyond their control.

What changes are proposed

The petition states that if the state gains control over the assets of institutions previously controlled by owners connected to the aggressor state or acquires such assets through a special procedure, a fair approach should also be provided for Ukrainian citizens who have obligations to such institutions.

In particular, it is proposed to consider the possibility of:

• reviewing credit obligations;
• taking into account all actually paid funds, interest, and commissions;
• determining the real amount of debt;
• applying preferential restructuring;
• providing the borrower with the opportunity for a special buyback of the claim right under a procedure defined by law, including for a symbolic amount — for example, 1 hryvnia, if such assets were acquired by the state under special conditions.

Protecting borrowers from pressure during debt collection

The petition author also proposes ensuring protection of citizens from unlawful psychological pressure during debt collection, especially under martial law conditions.

As stated in the appeal, its goal is not to exempt unscrupulous borrowers from responsibility but to create a fair mechanism for Ukrainian citizens who worked, developed their own business, created jobs, and supported the country’s economy but lost the ability to fulfill their credit obligations due to the war and other extraordinary circumstances.

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