The National Bank of Ukraine simplified requirements for raising loans from international financial institutions
Following the ongoing liberalisation of the currency control, the National Bank of Ukraine (“NBU”) adopted Resolution No. 88 dated 7 September 2017 (“Resolution”) (effective from 13 September 2017) simplifying the procedure for obtaining loans from international financial institutions (“IFIs”).
In particular, the NBU introduces the following improved conditions for cooperation of Ukrainian companies with IFIs:
- Requirement to register cross border loan agreements extended by IFIs with the NBU is cancelled
- Residents entering into such loan agreements will be able to buy (exchange) and/or transfer foreign currency in favour of the IFI without the NBU registration of the agreement and individual licence of the NBU, and the banks will service transactions under such agreements in accordance with the terms of the agreements themselves
- Ukrainian residents (legal entities, including banks, individual entrepreneurs, individuals) may now enter into loan agreements with the IFIs, under which the loan amount will be determined in Ukrainian hryvnia (UAH), but the disbursement, repayment and other payments under the loan will be made in foreign currency subject to the terms and conditions of the agreement.