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IFI Cross-Border Loan Registration Abolished

IFI Cross-Border Loan Registration Abolished

Ukraine
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The National Bank of Ukraine (the "NBU") has significantly simplified its rules for attracting cross-border loans by Ukrainian borrowers from international financial institutions ("IFI"), such as, among others, the European Bank for Reconstruction and Development and International Finance Corporation.

With effect from 13 September 2017, any cross-border loan extended by an IFI to a Ukrainian borrower is not subject to registration with the NBU.

The NBU has also permitted IFIs to extend loans in UAH while repayments under such loans are allowed to be made in foreign currency.

Any cross-border loan granted by an IFI can be attracted and serviced subject to the terms agreed between its parties without the need to obtain any NBU approvals or permits (individual licences) for its disbursement or repayment. The maximum interest rate caps are also not applicable to such loans.

By Ihor Olekhov, Partner, and Dmytro Orendarets, Senior Associate, Baker McKenzie

Ukraine Knowledge Partner

Avellum is a leading Ukrainian full service law firm with a special focus on finance, M&A, and dispute resolution. Our goal is to be the firm of choice for our clients with respect to their most significant business transactions. We bring the most advanced Western legal techniques and practice, which, coupled with our first-hand knowledge, broad industry experience, and unparalleled level of service, will help our clients achieve best results in their business endeavours. We work seamlessly in integrated teams with premier US, UK and European law firms in course of multijurisdictional transactions. The team consists of 26 highly qualified attorneys, including three partners – Mykola Stetsenko, Glib Bondar, and Dmytro Marchukov, who are actively involved in every transaction. Avellum is recognised as one of the leading law firms in Ukraine by various international legal directories and Ukrainian legal editions (Chambers, Legal500, IFLR1000, Ukrainian Law Firms, and others).

Firm's website: www.avellum.com

 

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