On 23 March 2017, the Board of the National Bank of Ukraine (“NBU“) adopted resolution No. 26 (the “Resolution“) authorising that on 10 April 2017 the following important and long-anticipated amendments to the rules on foreign currency lending to Ukrainian borrowers will become effective (the “Amendments“):
The Amendments are a significant step forward from the previous heavily regulated foreign loan registration procedures, which, amongst other things, blocked the development of a secondary loan market in Ukraine. Following the Amendments, trading loans will no longer depend on a Ukrainian borrower fulfilling all the registration formalities for the change of lender with the NBU. It is expected that both lenders and Ukrainian borrowers will benefit from the Amendments as a liquid secondary loan market allows banks to free up capital, manage credit risk and use loan origination capabilities more efficiently. At the same time, it allows borrowers to benefit from interest rate discounts on subsequent loans.
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