Starting with 11 January 2016 the ban on replacing parties to cross-border loan agreements was lifted by the NBU*.

However, the registration process for the replacement is fairly burdensome and time-consuming as additional documents (information on the ownership structure of a new debtor/creditor, documents, supporting economic expediency of the transaction, etc.) will have to be provided to the NBU in order to register such changes.

Similar requirement to come up with additional paperwork also applies in certain other cases, in particular:

·         Provision of a loan by a non-resident via settlement of trade payables of a resident before another non-resident;

·         Obtaining a loan by an individual in the amount exceeding USD 500,000.

In all the aforementioned cases, it may take up to 1.5 month to register such loan with the NBU.

We will continue to monitor the developments and keep you updated on the issue.
 

* NBU Resolution No. 996 dated 30 December 2015

 
Contacts:

Camiel van der Meij, Partner & TLS Leader, camiel.van.der.meij@ua.pwc.com
Andrey Pronchenko, Director, Tax and Legal Services, andrey.pronchenko@ua.pwc.com
Alexey Katasonov, Senior Attorney, Legal Services, alexey.katasonov@ua.pwc.com

75 Zhylyanska Street | Kyiv | Tel:  +380 44 354 0404 | Fax: +380 44 354 0790 | pwc.ukraine@ua.pwc.com |  www.pwc.com/ua 

This flash report is produced by PricewaterhouseCoopers’ tax and legal services department. The material contained in this alert is provided for general information purposes only and does not contain a comprehensive analysis of each item described. Before taking (or not taking) any action, readers should seek professional advice specific to their situation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.
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