11:12 20.06.2013

EBRD could provide 25-30% of its total financing in hryvnias

2 min read

The European Bank for Reconstruction and Development (EBRD) could provide 25-30% of its total financing to Ukraine in hryvnias.

“We give around 30% of general financing in Russia over the past year in Russian rubles. I think that we could provide 25-30% of our total financing in Ukraine in hryvnias,” EBRD's Director for Local Currency and Capital Markets Development Andre Kuusvek said at a press conference on Wednesday.

He said that EBRD plans to start crediting in hryvnias this year.

EBRD Director for Ukraine Sevki Acuner said at the press conference that the expansion of crediting in hryvnias will allow reducing risks for Ukrainian companies.

As reported, the National Bank of Ukraine (NBU) in resolution No. 172 of May 17, 2013 revised the provisions of opening and operating resident and nonresident banks' correspondent accounts in foreign currencies and nonresident banks' correspondent accounts in hryvnias.

Resolution No. 172, among other things, authorizes the EBRD to use own correspondent accounts in hryvnias for handling operations under a loan agreement with a resident entity, for obtaining by the EBRD of an interbank credit, for effecting operations under international treaties of Ukraine and transactions related to foreign investment in the country.

Under resolution No. 172, the EBRD could also use its correspondent accounts in hryvnias for operations related to the satisfaction of the requirements of the EBRD as a lender through the sale of the subject of collateral for hryvnias in case a resident debtor fails to fulfill obligations.

This account could be also used for transactions under an agreement on borrowing by Ukrainian banks of EBRD funds on terms of subordinated debt.

As reported, the EBRD has repeatedly showed interest in lending in the local currency. In addition, the Bank expects the removal of all barriers to the issuance of hryvnia-denominated bonds by international financial institutions.

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