The Deposit guarantee Fund of individuals (fgvfl) has identified the restructuring of credit debt of physical persons to the Bank “Michael” (Kiev).

According to the report on the website of the Fund, the period of restructuring from 19 may 2016 to 11 July 2018. During the period of restructuring are not subject to penalties under the credit agreements (penalties, fines) do not accrue and are not charged for certain credit agreements of the Commission and other payments in addition to interest.

According to the report, the grace period is from may 19, 2016 may 19, 2017, during which all indebtedness under the credit agreements is considered urgent, and interest is accrued at the standard interest rate and penalties are not applied. The interest rate on fixed debt (standard rate) 3% a month (36% per annum), in arrears – 5% monthly (60% annually ).

“Approved restructuring terms are more favorable to borrowers, as are not charged for services that the Bank is not provided but provided in the loan agreement, namely, the fee for account maintenance, commissions, insurance premiums and more. Due to this, the total cost of the loan restructuring will be from 36% to 60% per annum (in arrears), while at standard conditions of granting credit products of the Bank such fee was up to 85-95%, and in some cases, and 220% p”, – notes the guarantee Fund.

According to the DGF, a loan term loan, the final repayment period of which is defined in credit agreement to may 19, 2017 is the end of the day 19 may 2017. Crediting term loans, the final repayment period of which is installed after 19 may 2017, is the date of that certain credit agreement, but not later than end of day July 11, 2018.

The balance of your current debt is the balance owed on the loans and accrued interest (3% per month, 36% per annum on term debt and 5% per month, 60% per year on arrears as at 19 may 2016) minus the money received for temporary administration/liquidation.

Overdue debt on loans, the final repayment period of which is set to may 19, 2017, determined by the amount of outstanding credit borrower as at the end of the day may 19, 2017; on loans, the final repayment period of which is installed after may 19, the debt is not paid on the scheduled repayment date.

After the end of the grace period is established the following schedule of repayment: for loans with maturities after 19 may 2017 – in equal installments till the end of the term of the credit agreement, on or before the day preceding the date of the completion of the liquidation of the Bank (until 11 July 2018); on loans, maturities are defined until may 19, 2017 may 19, 2017 (i.e. from 20 may 2017 shall be considered immediately overdue).

As reported, Kyiv administrative court of appeal 22 February 2017 confirmed that the factoring agreement concluded between the Bank “Michael” and financial company “Galaxy” on may 19, 2016 on the assignment of the loan portfolio is insignificant. DGF may 30, 2016 acknowledged worthless the relevant agreement for the assignment of the claim under the loan agreements on 682,3 million.

In early June, 2016 national Bank of Ukraine has notified law enforcement authorities about signs of organized crime in the actions of heads of Bank “St. Michael”, which on the eve of the introduction of the interim administration conceded to demands for Bank loans at a lower price, which gives reason to believe these deals are worthless.

The national Bank declared the Bank “Michael” insolvent may 23, 2016 and reported that another 23 December 2015 it gave the institution the status of the problem in connection with risky activities.

Despite this, on may 20, 2016 the Bank conducted operations, following which the burden on the DGF increased from UAH 1.6 billion to UAH 2.6 bn.