{"id":103751,"date":"2018-03-01T12:00:52","date_gmt":"2018-03-01T10:00:52","guid":{"rendered":"https:\/\/eba.com.ua\/?p=103751"},"modified":"2018-03-29T13:08:44","modified_gmt":"2018-03-29T10:08:44","slug":"ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks","status":"publish","type":"post","link":"https:\/\/eba.com.ua\/en\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/","title":{"rendered":"[:en]Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks [:]"},"content":{"rendered":"<p>The National Bank of Ukraine (the \u201c<strong>NBU<\/strong>\u201d) is continuing to expand the range of financial instruments that can be used by Ukrainian banks to attract financing from international partners.<\/p>\n<p>Since 16 February 2018, Ukrainian banks have been allowed to take so called \u201csynthetic loans\u201d (\u201c<strong>Synthetic Loans<\/strong>\u201d) not only from international financial organisations (\u201c<strong>IFIs<\/strong>\u201d), but also from any other foreign entity. First introduced back in September 2017, Synthetic Loans are cross-border loans or borrowings that are denominated in Ukrainian Hryvnia (\u201c<strong>UAH<\/strong>\u201d) but disbursed and repaid in a foreign currency. Synthetic Loans can be granted to Ukrainian borrowers by IFIs and now also to Ukrainian banks by any other foreign lender.<\/p>\n<p>In a Synthetic Loan structure, a forex risk is vested in a creditor. This is not typical for cross-border financings with Ukrainian borrowers, including those involving IFIs, At the same time, Synthetic Loans granted to Ukrainian borrowers are exempt from registration with the NBU and making any payments thereunder does not require an NBU individual licence. The rules for Synthetic Loans can also be coupled with the benefits of pre-existing exemptions from the NBU currency control regime. For example, no restrictions on early repayment of the loans apply to the bank-borrowers and the loans from IFIs are not subject to the various limitations applicable to other cross-border loans, including a maximum interest rate cap set by the NBU. Separately, foreign lenders may use various FX hedging instruments, which are not available to Ukrainian borrowers. All of this may give more flexibility to foreign lenders with respect to commercial terms for Synthetic Loans and, thus, raise their interest in this instrument.<\/p>\n<p>Synthetic Loans, viewed as having\u00a0 high potential, are supposed to stimulate on-lending in UAH by Ukrainian banks. The prospects of Synthetic Loans, however, are very much dependent on the attractiveness of this instrument for foreign lenders.<\/p>\n<p><em>Legislation: Resolution of the National Bank of Ukraine \u201cOn Foreign Currency Transactions under Loans and Borrowings from Non-Residents on Ad Hoc Terms\u201d No. 12 dated 15 February 2018<\/em><\/p>\n<p><strong><em><u>Authors<\/u><\/em><\/strong><strong><em>:<\/em><\/strong><\/p>\n<p><em>Vitaliy Radchenko, Partner, <a href=\"mailto:vitaliy.radchenko@cms-cmno.com\">vitaliy.radchenko@cms-cmno.com <\/a><\/em><\/p>\n<p><em>\u00a0Kateryna Chechulina, Senior Associate, <a href=\"mailto:kateryna.chechulina@cms-cmno.com\">kateryna.chechulina@cms-cmno.com <\/a><\/em><\/p>\n<p><em>Khrystyna Korpan, Lawyer, <a href=\"mailto:khrystyna.korpan@cms-cmno.com\">khrystyna.korpan@cms-cmno.com <\/a><\/em><\/p>\n<p><em>Anna Pogrebna, Partner, <a href=\"mailto:anna.pogrebna@cms-rrh.com\">anna.pogrebna@cms-rrh.com<\/a><\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>The National Bank of Ukraine (the \u201cNBU\u201d) is continuing to expand the range of financial instruments that can be used by Ukrainian banks to attract financing from international partners. Since 16 February 2018, Ukrainian banks have been allowed to take so called \u201csynthetic loans\u201d (\u201cSynthetic Loans\u201d) not only from international financial organisations (\u201cIFIs\u201d), but also [&hellip;]<\/p>\n","protected":false},"author":4489,"featured_media":103760,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[24,23],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks  - European Business Association<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks  - European Business Association\" \/>\n<meta property=\"og:description\" content=\"The National Bank of Ukraine (the \u201cNBU\u201d) is continuing to expand the range of financial instruments that can be used by Ukrainian banks to attract financing from international partners. Since 16 February 2018, Ukrainian banks have been allowed to take so called \u201csynthetic loans\u201d (\u201cSynthetic Loans\u201d) not only from international financial organisations (\u201cIFIs\u201d), but also [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/\" \/>\n<meta property=\"og:site_name\" content=\"European Business Association\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-01T10:00:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-03-29T10:08:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/eba.com.ua\/wp-content\/uploads\/2018\/03\/CMS_2_29032018.png\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"300\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Katia Chaikovska\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Katia Chaikovska\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/\",\"url\":\"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/\",\"name\":\"[:en]Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks [:] - European Business Association\",\"isPartOf\":{\"@id\":\"https:\/\/eba.com.ua\/#website\"},\"datePublished\":\"2018-03-01T10:00:52+00:00\",\"dateModified\":\"2018-03-29T10:08:44+00:00\",\"author\":{\"@id\":\"https:\/\/eba.com.ua\/#\/schema\/person\/591c0ae4ce3e3490f70325dfb642ac52\"},\"breadcrumb\":{\"@id\":\"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/eba.com.ua\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks\",\"item\":{\"@type\":\"WebPage\",\"name\":\"[:en]Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks [:]\"}}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/eba.com.ua\/#website\",\"url\":\"https:\/\/eba.com.ua\/\",\"name\":\"European Business Association\",\"description\":\"We are looking for proactive business leaders, who shape the investment climate of Ukraine and ready to supervise the work of the largest and the most influential business-community of Ukraine \u2013 European Business Association!\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/eba.com.ua\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/eba.com.ua\/#\/schema\/person\/591c0ae4ce3e3490f70325dfb642ac52\",\"name\":\"Katia Chaikovska\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/eba.com.ua\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/59d91c5da250ea725c3c425585ff46fb?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/59d91c5da250ea725c3c425585ff46fb?s=96&d=mm&r=g\",\"caption\":\"Katia Chaikovska\"},\"url\":\"https:\/\/eba.com.ua\/en\/author\/katia-chaikovska-eba-com-ua\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"[:en]Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks [:] - European Business Association","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/eba.com.ua\/ukraine-nbu-simplifies-attracting-of-synthetic-loans-by-ukrainian-banks\/","og_locale":"en_US","og_type":"article","og_title":"Ukraine: NBU Simplifies Attracting of Synthetic Loans by Ukrainian Banks  - European Business Association","og_description":"The National Bank of Ukraine (the \u201cNBU\u201d) is continuing to expand the range of financial instruments that can be used by Ukrainian banks to attract financing from international partners. 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