10:38 24.10.2017

NBU clarifies terms of banks' participation in restructuring clients' debts

1 min read
NBU clarifies terms of banks' participation in restructuring clients' debts

The National Bank of Ukraine (NBU) has specified conditions for banks' investments related to the financial restructuring of customers' debts.

According to NBU Board resolution No. 104 on amendments to the regulation of the banks' activities in Ukraine dated October 20, 2017, which comes into force on October 24, from now on such investments can be made by the bank operating in the market for at least three years and having regulatory capital in accordance with the norms of the law (currently not less than UAH 200 million). In this case, the bank may be in the process of executing the capitalization program, if investment does not violate the implementation of this program.

In addition, the bank should not be subject to the measures of the regulator's influence in part of limiting, suspending or terminating certain types of transactions.

According to an NBU press release, "the changes will help the banks carry out the financial restructuring of their clients' debts, reduce the amount of non-performing loans (NPL) in the banking system and restore the economic activities of debtors."

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