The National Bank of Ukraine (NBU) has made an exception of the general rules of controlling the rates of foreign credits of loans if resident borrowers (both companies and financial institutions) raise funds from nonresident creditors with the participation of export-credit agencies.
“This step would expand opportunities for residents’ access to foreign credit resources provided with the participation of export-credit agencies”, the NBU said in its comments to resolution No. 404 dated November 22, on the approval of amendments to the rules of receiving credits and loans by residents in foreign currency from nonresidents and provision of loans in foreign currency by residents to nonresidents.
The central bank recalled that at present the NBU controls the cost of foreign currency-pegged private borrowing in the form of credits or loans: it cannot exceed the upper credit rates set in a separate resolution of the NBU Board. However, after November 30, when the new resolution comes into effect, payments that residents send to nonresidents to refund their expenses to pay for services provided by export-credit agencies on the list of Organisation for Economic Cooperation and Development (OECD) will not be taken into account for calculating this cost.
The central bank obliged banks to analyze the origin of currency of residents who do not have the status of financial institutions and who want to use this currency to provide loans to nonresidents. (Interfax/Business World Magazine)
