Military personnel are not given loans. The Rada stated that the problem can be solved without changes to the law

The Verkhovna Rada Committee on Finance, Tax and Customs Policy has acknowledged the problem with lending to military personnel and is preparing solutions to overcome it, said Danylo Hetmantsev, the committee's chairman.

He noted that banks are massively refusing to lend to military personnel due to a legislative preference that prohibits charging them interest and penalties on loans.

According to him, such a norm, although it is a preference, actually blocks the military's access to new loans, because the state does not compensate banks for the associated risks and loss of profit.

Hetmantsev supported the proposal of the NBU Chairman to create a budget program that would compensate banks for these costs.

He also agreed with the initiative of monobank co-founder Oleg Horohovsky, according to which banks servicing payments to military personnel should provide them with credit limits in the amount of their average salary for the last three months.

"Servicing the reward brings income, part of which must be directed to social programs. This can be recorded within the framework of a relevant memorandum between banks and does not require regulatory changes," Hetmantsev emphasized.

Currently, banks are refusing to open a credit limit for military personnel and are blocking the "Payment in installments" service.

Gorohovsky noted that Monobank does not charge interest on loans already issued, but does not issue new loans because the bank does not have such resources. According to him, other banks have the same position.

He emphasized that all this is happening because the law was passed, but the source of financing for this provision of the law was not provided for.

• The reason for the refusal of new loans to military personnel (a type of which is the "Payment in Installments" product) lies in the "credit holidays" introduced by Part 15 of Article 14 of the Law "On Social and Legal Protection of Military Personnel and Members of Their Families."