NBU Cancelled Registration of Cross-Border Loans for International Finance Institutions

With effect from 13 September 2017, the National Bank of Ukraine (the “NBU”) cancelled the registration with the NBU of cross-border loans between Ukrainian residents as borrowers and international finance institutions as lenders. The Board of the NBU adopted Regulation No. 88 “On Amendments to Certain Legislative Acts of the National Bank of Ukraine” dated 7 September 2017 with the relevant amendments, which may be viewed as a milestone in the currency control liberalisation actions taken by the regulator so far.

Additionally, the NBU permitted loan amounts under such cross-border loans to be expressed in the Ukrainian local currency, Ukrainian Hryvnia, while the currency of payment must be a foreign currency of 1st Group NBU Classifier, which includes freely convertible currencies used for international payments and currencies of member states of the European Union.

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