Regime for obtaining financing by ukrainian enterprises from IFO has been improved

In order to increase the flow of debt capital to Ukraine, the National Bank has improved the regime for obtaining financing by the Ukrainian enterprises from the IFO. This is reported in a press release on the website of the bank. The adopted changes have been approved by the Resolution of the NBU Board of 07.09.2017 No. 88 “On Amending certain normative legal acts of the National Bank of Ukraine” and include two main aspects:

• Exemption of loan agreements in the foreign currency with the IFO from the registration in the NBU.
• Providing residents with the opportunity to attract loans from the IFO under the contracts that contain special conditions – when the loan currency is determined in UAH, and all transactions between the IFO and a resident borrower are conducted in foreign currency.

The operations under the loan agreement will be conducted by an authorized bank in accordance with the terms of the agreement itself, and the cross-border transactions (including at the expense of the purchased foreign currency) can be carried out without registration of the National Bank. The Resolution on the Amendments entered into force on September 13, 2017. It is assumed that simplifying the procedure for obtaining loans by the residents will facilitate more active cooperation of Ukrainian business with the international financial organizations. The Director of the European Bank for the Reconstruction and Development in Ukraine Shevki Adzhuner expresses positive forecasts in this regard. In his opinion, the innovation will allow to expand the range and increase the number of funded projects due to more flexible structuring and administration from both the IFO and Ukrainian borrowers.