In Ukraine, a mechanism may be introduced that will allow banks to write off up to 100% of overdue consumer loan debt of servicemembers, their family members and other protected categories of citizens. The Verkhovna Rada Committee on Finance, Tax and Customs Policy on September 10, 2026 recommended adopting draft law No.15458 as a basis. As of September 15 the document is awaiting consideration by the parliament.
The draft law was registered on July 30, 2026. It concerns the regulation of overdue debt of servicemembers, civilians deprived of personal liberty or missing, their family members and persons with disabilities resulting from the war.
The document provides for:
- the possibility for the creditor to forgive up to 100% of the debt on a consumer loan;
- exemption of the forgiven amount from personal income tax (PIT) and the military levy;
- removal of tax obstacles for banks when writing off such debts;
- closure of the corresponding enforcement proceedings after settlement of the debt;
- exemption from collection of the enforcement fee in cases provided by law.
An important nuance: the draft law does not obligate banks to automatically write off all servicemembers’ loans. The creditor will independently decide whether to forgive the debt and to what extent – fully or partially.
According to the explanatory materials to the draft law, the total debt of servicemembers and their family members only to the banks that provided the relevant information exceeds UAH 13.75 billion. In addition, since the start of the full-scale invasion some banks have already independently written off such debts. Due to existing taxation rules, financial institutions had to pay out of their own funds over UAH 4.9 million in taxes related to such write-offs.
The authors of the initiative propose to remove this tax barrier so that it is easier for banks to apply the debt forgiveness mechanism for people affected by the war. At the same time the law is not yet in force. The Committee only recommended that the Verkhovna Rada adopt the draft law as a basis and halve the deadline for submitting amendments before the second reading. Final provisions may change during the parliament’s consideration of the document.
