Financial institutions will be required to disclose the full cost of microloans

On October 6, President Volodymyr Zelensky signed a law requiring financial institutions to disclose the full cost of loans for under one month valued less than the minimum wage (currently, UAH 5,000).  The document also sets the maximum amount of sanctions that a financial institution can impose on a client for overdue loan payments.

The law will allow proper regulation of the microcredit market and protect consumers from unjustified debt burden. This is another step towards the introduction of European standards for the protection of the rights of citizens who use consumer credit.