On 23 March 2017, the National Bank of Ukraine (NBU) adopted
amendments to its regulations regarding the registration of
cross-border loans, as described further below.
In particular, the following changes will come into force as of
10 April 2017:
The effective date rule for the assignment of claim rights is
The requirement that an agreement regarding the cross-border
assignment/transfer of claim rights only comes into force upon
registration of the loan agreement with the NBU has been
Despite this, the relevant agreement must nonetheless be
registered with the NBU prior to any cross-border payments being
made to the new lender, as the borrower's Ukrainian servicing
bank would not be allowed to carry out such payments to the new
lender until its registration.
The new lender should bear in mind that the NBU's
requirement regarding the maximum interest rate for cross-border
loans (i.e., that all fees, interest, penalties etc. under such
loan may not exceed the maximum interest rate established by the
NBU) would apply.
Waiver from loan interest is allowed
The new lender may now unilaterally waive its rights to receive
interest (in full or partially) under an assigned domestic FX loan
agreement in order to comply with the maximum interest rate
requirements. Previously such option was not available, and
amendments to the underlying loan agreement were required to bring
the interest rate into compliance with these requirements.
The lender/servicing bank may now apply for NBU
Registration of amendments to cross-border loan agreements may
now be initiated either per application of the borrower or per
mutual application of the lender (new lender) and the
borrower's servicing bank in certain cases (e.g., in case of
assignment of claim rights under the loan agreement).
Previously, such application could only be submitted by the
borrower, which permitted abuse by uncooperative borrowers.
Syndicated loan registration rules amended
If a Ukrainian borrower receives a syndicated loan from a
foreign bank and a Ukrainian bank, and payments under such loan are
serviced through a foreign bank (facility agent), the loan
agreement is subject to registration with the NBU in respect of the
entire loan amount, and the maximum interest rate requirement then
applies in respect of the entire loan amount as well.
Cross-border debt restructuring transactions
In case of purchasing of a lender's claim rights under
several cross-border loans with a Ukrainian borrower and further
consolidating those rights under a new single cross-border loan
agreement (by way of novation), such new loan agreement should then
be registered with the NBU and the previous loan agreement
registrations should be cancelled.
Rules for cancelling NBU registration changed
The cancelation of the cross-border loan's registration will
occur per NBU's discretion (not automatically as were
previously provided); the grounds for the cancelation will also be
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