The National Bank of Ukraine (NBU) has expanded the opportunities of raising synthetic loans in hryvnia and all payments settled exclusively in foreign currency (synthetic foreign currency collateralized debt obligations) for authorized banks, Interfax-Ukraine reports.
According to a posting on the regulator’s official website with reference to Resolution #12, effective from 16 February, Ukrainian banks will now have the right to receive such loans from non-resident creditors without their registration or an individual license from the National Bank. Prior to this, such loans could be obtained only from international financial organizations.
The National Bank claimed that the money would be used by Ukrainian banks to lend to borrowers in Ukraine in hryvnia, whereas the foreign currency risk will be borne by non-resident lenders.
Earlier, from 30 December 2017, the National Bank allowed banks to issue export foreign currency loans to foreign buyers of Ukrainian goods. Before that, Ukrainian banks could only issue foreign currency loans to foreign borrowers.