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Social and economic rights

Parliament takes first step to moratorium on sale of mortgaged property


The Verkhovna Rada has adopted in its first reading a draft law “On amendments to some legislative acts aimed at overcoming the adverse affects of the financial crisis”, N3585, which prohibits repossessions of mortgaged flats if the debt has been restructured, and the mortgagee is paying the interest on the loan. The bill received 237 votes.

The moratorium would be for 2009-2010 on condition that the interest was paid on time. The maximum period of arrears would be 2 months. Documentary proof would also be required of the restructuring of the loan.

Private banks would have the right to carry out the restructuring of individuals’ loans without a reduction in the financial class of the debtor until 31 December 2009. Payment of the actual loan can be postponed for no more than two years, and the loan agreements extended for up to ten years.

A clause would also be added to the Law on Value Added Tax waiving VAT on bank and financial institution operations dealing with such cases if they involved mortgage agreements on residential property.

 From information at http://news.liga.net/ukr/news/NU091418.html

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