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NBU permits early repayment of loans to DFIs and ECAs

NBU permits early repayment of loans to DFIs and ECAs

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The National Bank of Ukraine (“NBU”) further relaxed currency control restrictions allowing Ukrainian borrowers to make early repayments of cross-border foreign currency loans extended after 20 June 2023 to development finance institutions (“DFIs”) and foreign export credit agencies (“ECAs”).

To recap, back in June 2023, the NBU permitted the repayment of cross-border foreign currency loans to DFIs and ECAs, but expressly prohibited early repayments (both voluntary and mandatory). On the contrary, international financial institutions (“IFIs”) (such as EBRD and IFC) are fully exempted from the moratorium on foreign currency cross-border payments.

Please refer to our legal alert for more details on the changes to currency control restrictions effected in June 2023.

These recent changes are expected to remove the hurdles preventing DFIs and ECAs from providing financing for Ukrainian businesses on an equal footing with IFIs.

We will keep monitoring the changes of Ukrainian currency control rules to provide you with further updates.

Additional notes

This LEGAL ALERT is issued to inform AVELLUM clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The information above does not constitute legal or other advice and should not be considered a substitute for specific advice in individual cases.

By Glib Bondar, Senior Partner, and Yaroslav Pavliuk, Associate, Avellum

Ukraine Knowledge Partner

AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, and Antitrust.

Our aim is to be the firm of choice for large businesses and financial institutions in respect of their most important and challenging transactions.

We build lasting relationships with our clients and make them feel secure in new uncertain economic and legal realities.

We incorporate the most advanced Western legal techniques and practices into our work. By adding our first-hand knowledge, broad industry experience, and unparalleled level of service we deliver the best results to our clients in their business endeavours. Our partners are taking an active role in every transaction and ensure smooth teamwork.

AVELLUM is recognised as one of the leading law firms in Ukraine by various international and Ukrainian legal editions (Chambers, The Legal500, IFLR1000, The Ukrainian Law Firms, and others).

Firm's website: www.avellum.com


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