On July 1, the President of Ukraine signed the Law “On Amendments to the Economic Code of Ukraine and the Civil Code of Ukraine on preventing the imposition of fines on credits (loans) during the period of quarantine established to prevent the spread of the coronavirus disease (COVID-19) on the territory of Ukraine” No. 691-IX. 

The law protects borrowers from charging fines and interest on loans during the quarantine period and in the 30-day period after its end.

For this purpose, the document amends the “Final Provisions” of the Economic Code of Ukraine and the “Final and Transitional Provisions” of the Civil Code of Ukraine, according to which, in the event of default by the borrower during the period of quarantine established by the Cabinet of Ministers throughout the territory of Ukraine, and/or within thirty days after the end of such quarantine, the fulfillment of the monetary obligation under the contract, according to which the loan was granted to the borrower (loan) by a bank or other creditor (lender), the borrower is released from the obligation to pay to the creditor a penalty, fine, penalty for such delay.

The law enters into force the day after its publication.

Source: www.president.gov.ua