AUB News

On February 9, a meeting of the Ukrainian Banks Association Committee on Mortgage Lending Development was held. Representatives of 10 banks participating in state mortgage programs took part in the event.

The discussion was opened by Yevhen Metsger, Chairman of the Board of the state-owned company Ukrfinzhytlo. He outlined the current issues on the agenda and informed participants about the practical aspects of implementing the state program “eOselya.”

The meeting focused on issues related to the settlement of mortgage loans in the event of the borrower's death, in particular within the framework of the “eOselya” program. Participants discussed approaches to stopping interest accrual after confirmation of death, the specifics of working with heirs, and legal restrictions on making changes to credit and mortgage agreements during the period when heirs have not yet been determined.
The issue of distinguishing between military and civilian risks was also raised, as well as the relationship between social payments to the families of the deceased and the procedure for settling credit obligations in accordance with current regulations. It was noted that different approaches to interpreting such cases may affect the practice of settling individual cases.

During the discussion, participants also exchanged views on the economics of banks' participation in the “eOselya” program. In particular, they discussed the logic of charging a 2% fee for loan servicing, provided that there are actual cash flows on the loan. It was noted that if there is no repayment, no fee is charged.

Special attention was paid to approaches to organizing the process of settling such cases. Participants agreed that complete unification of procedures is not advisable. Instead, a combined approach is being considered, which involves defining basic technical procedures with the possibility of their implementation within the framework of banks' internal regulations.

Following the meeting, it was noted that the issues raised require further elaboration in working and technical formats with the involvement of all interested parties.