NBU permits banks to credit in hryvnias using foreign currency on clients' accounts as collateral

16:00, 30.08.2017 1 min read

The National Bank of Ukraine (NBU) has permitted banks to issue hryvnia-pegged credits using foreign currency on accounts of clients as collateral, the central bank has said on its website.

The decision was made on Tuesday. It is outlined in NBU resolution No. 82 amending NBU resolution No. 410 dated December 13, 2016.

The document took effect on August 30, 2017.

"Until now, banks were forbidden to issue loans to customers in the national currency (including through opening credit lines and by prolonging previously granted loans), if they used property rights to foreign currency placed on bank accounts to secure their obligations. The NBU permitted the issuance of loans in these cases. In the opinion of the central bank, this contributes to the revitalization of bank lending," the central bank said.