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Speaking as an expert at the press conference at the "Most-Kharkov" Information Agency, the partner of ILF Alexei Kharitonov said that the Law on the prohibition for financial institutions to increase unilaterally the amount of interest on the credit agreement that had been adopted on January 21, 2010 by the Verkhovna Rada was primarily aimed to protect the rights of borrowers.
The partner of ILF Alexei Kharitonov commented the law on prohibiting financial institutions to change the loan rates unilaterally.
Speaking as an expert at the press conference at the "Most-Kharkov" Information Agency, the partner of ILF Alexei Kharitonov said that the Law on the prohibition for financial institutions to increase unilaterally the amount of interest on the credit agreement that had been adopted on January 21, 2010 by the Verkhovna Rada was primarily aimed to protect the rights of borrowers.
At the same time, as Alexei Kharitonov said, the adoption of this law was provoked due to the need of removal of those defects of legal credit relationships regulation, which had been identified during the validity of the Law of Ukraine that had been adopted on 12.12.2008 ¹ 661 "On Amending Certain Legislative Acts of Ukraine concerning the prohibition for banks to change the terms of the bank deposit contract and credit agreement unilaterally."
So, the law prohibits all financial institutions to increase unilaterally the interest rate on credit contracts (and thus to reduce it on deposit agreements).
Apart from the above, the law also prohibits financial institutions to demand early repayment of the unpaid debt on credits and to abrogate unilaterally concluded credit agreements.
