NBU simplifies the conditions for raising loans from International Financial Institutions
The National Bank has simplified procedure of raising loans by residents from International Financial Institutions(IFIs) in order to revitalize further cooperation of Ukrainian business with IFIs and to boost active inflow of debt capital to Ukraine.
In particular, the changes include:
- Firstly, loan agreements with IFIs made in foreign currency are released from obligation to be registered at the National Bank;
- Secondly, residents are provided with opportunity to raise loans from IFIs under contracts that contain special conditions (when loan currency is set in UAH, and all transactions between IFIs and the resident borrower are conducted in foreign currency).
In general, the authorized bank will carry out operations under the loan agreement with IFIs in accordance with the terms of the agreement itself, and cross-border transactions (including purchases of foreign currency) will be allowed without registration at the National Bank.
“The EBRD welcomes the new rules enabling Ukrainian enterprises to have enhanced access to financing from IFIs. This move will broaden the range and increase the number of funded projects, in particular in hryvnia, due to adoption of more flexible approach to loan structuring and administration by both IFIs and Ukrainian borrowers. All in all, this decision will help to improve the investment climate and encourage the inflow of foreign investment into the real sector of economy,” said Mr Sevki Acuner, the EBRD’s Country Director for Ukraine.