NBU introduces incentives to support prolongation of LPN and subordinated debt maturity

Asters, Kyiv, Ukraine
Wed, June 24, 2015

By its Resolution No. 409, dated 23 June 2015, effective as of 24 June 2015, the National Bank of Ukraine (the "NBU") has permitted payment to the foreign lenders of a single additional fee (the "Additional Fee") for the prolongation of the maturity of Ukrainian banks' subordinated loans and the loans sourced with the proceeds of debt securities issued abroad and listed in foreign stock exchanges as of the effective date of Resolution No. 409. The Additional Fee can be charged without including it in the calculation of the maximum interest rate established by the NBU for cross-border loans and subordinated debt.

According to Resolution No. 409, the Additional Fee can only be charged if the loan term is extended for at least 2 years and may not exceed 2 percent of the outstanding principal amount.

For further information please contact Asters' partner Iryna Pokanay
and counsel Gabriel Aslanian.