How the banking system performed during the invasion.
We found out what happened to credit limits and loan debts. How banks operating in Ukraine deal with credit card borrowers after Russia's invasion almost 46.3 million payment cards, 16.1 million of which had a credit function. The leaders in the number of issued cards were PrivatBank, Sberbank, Universal Bank (monobank), Raiffeisen Bank, FUIB, Alfa-Bank, A-Bank, UkrSibbank, Ukrgasbank and others.
Recently, for most Ukrainians, cards have become a more acceptable method of payment than cash. According to the NBU, in 2021, 9 out of 10 card transactions were non-cash. Many bank customers use credit limits. A particularly convenient function of the cards is the grace period (the period during which you can not pay interest on the loan), which averages 55 days.
After the beginning of the Russian invasion, many credit card holders were in for unpleasant surprises. Some banks have opted to reset their credit limits, which cardholders often found out about at store checkouts when their transactions were rejected. In such a situation, many had to turn to relatives and friends for financial assistance.
PrivatBank: credit holidays
Owners of PrivatBank credit cards faced zeroing of the credit limit on February 25, 2022. On the eve, in order to fit into the grace period, they deposited on the cards the amounts spent over the previous month. Many users continued to rely on credit funds, especially in war conditions, but hope was destroyed by an offensive message in Privat24 Internet banking: «Repay the debt, and we will review the size of the credit limit within three days. If the debt is not repaid, you will not be able to get a loan in the future».
However, PrivatBank quickly corrected the situation.
«From today, the ability to use credit funds will be restored within the established limit on the card, — Oleg Serga, Head of Communications at Privatbank, said on February 26 in his Facebook profile. — Increasing the credit limit will not be available, but you will be able to use the funds within the existing limit».
Later, PrivatBank announced credit holidays for all credit cards of individuals(Universal, Universal Gold and premium) from March 1 to June 1, 2022. During this period, the rate will be 0.00001% and there will be no mandatory minimum payment.
Another step PrivatBank has taken to meet those who experience difficulties with cash withdrawals. And from February 26, he increased the limit for withdrawing money at the cash desks of retail outlets from UAH 500 to UAH 5-6 thousand. UAH Now in the retail chains Silpo, Fora and filling stations OKKO, you can withdraw up to 6 thousand UAH from PrivatBank cards, at filling stations & # 171; Ukrnafta & # 187; — up to 5 thousand UAH. UAH PrivatBank also announces regular replenishment of ATMs. However, in practice, withdrawing money can be difficult, especially in Kyiv.
Recall that earlier on February 24, the validity period of all PrivatBank cards was automatically extended for 180 days.
Sberbank: credit limits unchanged
Sberbank reported that after the start of the Russian invasion, credit limits on customer cards were retained. And on February 27, Sberbank automatically extended the validity of its cards, which had already expired, until August 1, 2022.
monobank (Universal Bank): the grace period was extended
With an unpleasant surprise in the form of a cancellation of the credit limit, monobank cardholders faced a day earlier than PrivatBank clients. But the situation was quickly corrected there.
«We considered, considered how to return credit limits. Nothing good can come of this. But it doesn't matter anymore. This must be done based on the fact that in this situation it is correct. This decision is not bankers or businessmen, this decision is a spit in the face of the enemy», — Oleg Gorokhovsky, co-founder of monobank, wrote in his telegram channel. However, monobank made available to customers only UAH 10 thousand from the previously approved credit limit, provided that they were available before the start of the war.
Later, on February 27, Gorokhovsky announced that monobank was also extending the grace period by a month and canceling the obligatory payment for February 2022. At the same time, the debt will not be put out for delay and will not charge any fines and increased interest for non-payment. Recall that by now, in accordance with Law No. 691-IX approved on June 16, 2020, borrowers have already been exempted from fines and penalties on loans for the quarantine period and within 30 days after its completion. Quarantine in connection with COVID-19 in Ukraine will last until March 31, 2022 and no one has canceled it.
Raiffeisen Bank: the use of credit limits has been terminated
According to bank customers interviewed by Focus, Raiffeisen Bank, the Ukrainian subsidiary of the Austrian banking group, without warning after the start of the Russian invasion, reset credit limits on cards and put up debt. This is evidenced by the questions of customers in social networks. The bank replied to one of them: «While the use of credit funds has been terminated, in case of additional clarifications, we will immediately inform our customers».
However, Raiffeisen was reminded of the opportunity to use the « Cash near the cashier» in chain stores and gas stations, and also set a credit holiday from February 24 to March 30. Cards expired in February at Raiffeisen Bank were extended by 180 days.
FUIB: credit limit up to 5,000 for active customers
In PUMB, the bank of the richest Ukrainian Rinat Akhmetov, they took away the credit limits, but promised to return them.
«From February 27, we return the possibility of using a credit limit in the amount of up to 5 thousand UAH. active customers», — reported in the bank. That is, if the limit did not exceed UAH 5,000, it will be left unchanged. If, for example, the limit was UAH 10,000, and the client used UAH 2,000, UAH 5,000 will be available. If the debt exceeded UAH 5,000, the limit will be equal to the amount of the current debt and can be used within the limits of repayment.
The deadline for making a mandatory payment on credit cards, which is February 28, 2022 in FUIB, was extended for a month without accrual of additional interest and commissions.
Alfa-Bank: loan holidays for 3 months
Alfa-Bank's customers also complain about the reduction in the credit limit. First, they completely abolished the credit limit, then it was partially returned.
«They have now lowered the limit from UAH 197,000 to UAH 12,000, that is, to the amount of the debt of the current period, — a client of Alfa-Bank says on condition of anonymity. — That is, now, in which case, I cannot use credit money. The day before, the owner of the card put a significant amount on it, and did not suspect that the funds would be frozen.
However, for owners of Alfa-Bank credit cards, credit holidays for three months begin on March 1, 2022. At the same time, the mandatory minimum payment will be UAH 0, while the interest rate remains unchanged.
By the way, one of the co-owners of Alfa-Bank, Mikhail Fridman, became the first major Russian businessman to publicly speak out against Russia's war against Ukraine.< /p> UkrSibbank: credit limit reset
Several interviewed clients also complained about the zeroing of the credit limit on UkrSibbank cards. Moreover, on the financial institution’s Facebook page, on February 26, 2022, a user complained that, having a positive balance on her credit card, she even lost access to her own funds. The bank told her that the technical department was working to unfreeze customers' own funds on credit cards.
According to the study, it was Ukrainian banks that turned out to be the most loyal to customers during the Russian invasion of Ukraine, as with the state as well as private capital. They are primarily guided by humanitarian motives. Meanwhile, subsidiaries of foreign banks, although they have the opportunity to rely on the support of parent structures, are much more cautious.
At the same time, the National Bank of Ukraine does not spare refinancing loans to maintain the liquidity of the banking system. In just one day, February 25, 2022, financial institutions received refinancing in the amount of UAH 51.5 billion. Refinancing is carried out in accordance with the NBU resolution «On the peculiarities of maintaining the liquidity of banks during martial law», which was adopted on February 24.