The relevant decision of the Supreme Court of Ukraine, dated  25th of September 2013 , according  which the court sided with the guarantor of the loan in conflict with the Bank "Finance and Credit" .   Bankers admit that in this case the risks of non-repayment of debt is significantly greater. Guarantors for loans  are showed an example of how one can shirk the responsibility of the bank in the event of changes in the credit agreement .

According to the history of the case, on the 31 of May, 2006 the  bank issued a loan to an individual for        $ 60 000 with interest  - 11.5 %.   In the  same day the contract of guarantee was signed.  On the 18 th of September, 2008 the bank raised the rate  for 2.1 percentages,   and with the  the borrower was  signed an additional contract . However, the guarantor , citing the fact that the  " supplementary agreement was signed without his consent to the continuation of the guarantee agreement  with new terms  - related to the increase in liability of guarantor ", asked the court to recognize the guarantee agreement to be terminated in accordance with Art. 559 of the Civil Code ( CC).

District court agreed with guarantor, but the Court of Appeal  overturned the decision.

The Supreme Court explained that Article  559 Civil Code stops    guaranty   "in case of changes in liabilities without the consent of the guarantor ."

Thus, the increase in lending rates without the consent of the guarantor or without the relevant conditions in the contract does not allow to impose liability for guarantor  for default on borrowers obligations to the bank.