On 24 March 2016, the National Bank of Ukraine (the “NBU”) issued Regulation No. 192 (“Regulation No. 192”) simplifying the restructuring of cross-border loans granted to Ukrainian borrowers. Regulation No. 192 amends NBU Regulation “On Regulating the Situation in the Monetary and Foreign Currency Markets of Ukraine” No. 140 dated 3 March 2016 (“Regulation No. 140”).

According to the general rule provided under Regulation No. 140, early payments under cross-border loan agreements, including under any amendments thereto, are prohibited, subject to certain exemptions. Regulation No. 192 has extended the list of such exemptions, now permitting: (i) early payments under cross-border loans granted by foreign export credit agencies (in the amount of funds granted by foreign export credit agency); and (ii) changes to the frequency of interest payments (from annual to quarterly/monthly) or the rescheduling of interest payments for a period not exceeding 180 days.

Regulation No. 192 is a part of the on-going liberalisation of capital controls by the NBU aimed at improving the investment climate in Ukraine and promoting an inflow of capital to the country.

Regulation No. 192 became effective on 26 March 2016.

Legislation:

Regulation of the National Bank of Ukraine “On Regulating the Situation in the Monetary and Foreign Currency Markets of Ukraine” No. 140 dated 3 March 2016 as amended;

Regulation of the National Bank of Ukraine “On Introducing the Amendments to Regulation of the National Bank of Ukraine dated 3 March 2016 No. 140” No. 192 dated 24 March 2016.

Authors:

Daniel Bilak, Managing Partner, Daniel.Bilak@cms-cmck.com

Vyacheslav Ovechkin, Senior Associate, Vyacheslav.Ovechkin@cms-cmck.com