Featured Galleries CLICK HERE to View the Video Presentation of the Opening of the "Holodomor Through the Eyes of Ukrainian Artists" Exhibition in Wash, D.C. Nov-Dec 2021 USUBC COLLECTION OF OVER 160 UKRAINE HISTORIC NEWS PHOTOGRAPHS 1918-1997 "HOLODOMOR 1932-33: THROUGH THE EYES OF UKRAINIAN ARTISTS" - COLLECTION OF POSTERS AND PAINTINGS USUBC COLLECTION OF HISTORIC PHOTOGRAPHS ABOUT LIFE AND CAREER OF IGOR SIKORSKY PHOTOGRAPHS - INVENTOR OF THE HELICOPTER Ten USUBC Historic Full Page Ads in the Kyiv Post
THE NATIONAL BANK OF UKRAINE HAS SIMPLIFIED THE RESTRUCTURING OF THE LOANS TO RES PRODUCERS BY THE BANKS
Asters, Kyiv, Ukraine,
September 10, Thu, 2020
Pursuant to Resolution No. 118 of the Management Board of the National Bank of Ukraine "On specifics of fulfillment of the requirements of certain resolutions of the National Bank of Ukraine in relation to assessment of credit risk" dated 18 August 2020, the NBU has substantially reduced the number of indicators, based on which the bank must declare the occurrence of an event of default under the loans provided to RES producers. The aforementioned NBU resolution allows the restructuring of the debt of the RES producers by way of partial write off or capitalization of interest accrued and overdue for over than 90 calendar days or its conversion into a different instrument. The banks are no longer required to qualify the implementation of the above measures as risk factors while assessing their credit risk. This reduces provisioning under the relevant operations.
The aforementioned exemptions shall apply if the following conditions are met simultaneously:
- agreements or amendments to existing agreements related to debt restructuring are entered into by 28 February 2021;
- amendments to existing agreements, including conditions related to restructuring, do not decrease NPV of the project by more than 10% compared to the amount available as of the date of the NBU resolution.
NBU Resolution No. 118 provides that agreements or amendments to existing agreements related to the debt restructuring shall be in line with the requirements of the Law of Ukraine No. 810-IX dated 21 July 2020 “On Introduction of Amendments to Certain Laws of Ukraine as to Improvement of Conditions of Support for Production of Electricity from Alternative Energy Sources”, including the restructuring rules thereunder. However, this law does not provide for any specific debt restructuring rules under the loan agreements.