The National Bank of Ukraine (the "NBU") has significantly simplified its rules for attracting cross-border loans by Ukrainian borrowers from international financial institutions ("IFI"), such as, among others, the European Bank for Reconstruction and Development and International Finance Corporation.

With effect from 13 September 2017, any cross-border loan extended by an IFI to a Ukrainian borrower is not subject to registration with the NBU.

The NBU has also permitted IFIs to extend loans in UAH while repayments under such loans are allowed to be made in foreign currency.

Any cross-border loan granted by an IFI can be attracted and serviced subject to the terms agreed between its parties without the need to obtain any NBU approvals or permits (individual licences) for its disbursement or repayment. The maximum interest rate caps are also not applicable to such loans.

Additional notes
This LEGAL ALERT is issued to inform Baker McKenzie clients and other interested parties of legal developments that may affect or otherwise be of interest to them. The comments above do not constitute legal or other advice and should not be regarded as a substitute for specific advice in individual cases.