The National Bank of Ukraine lifts the ban on replacing parties to cross-border loan agreements
PwC, Kyiv, Ukraine
Tue, Jan, 19, 2016
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
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