On December 25, 2014, the Management Board of the NBU passed Resolution No.860 to adopt the amendments to the regulations on emergency loans issued by banks in Ukraine, as posted on the website of the financial regulator.
This resolution stipulates the procedure for issue of emergency loans by Ukrainian banks, including calculation of the interest rate based on reference rates set by the NBU by adding one and a half percentage point, however, which is subject to adjustment in case the reference rate is changed, until the agreement is expired; additions and clarifications to a list of restrictions imposed on bank operations involving use of emergency loans; expanding a list of property types that can be used as security to cover the loan, to be accepted along with profit participation rights; introduction of the norm to regulate conclusion of the financial guarantee agreement with a substantial owner of the bank/controller, what has an impact on the adjustment factor, when calculating the security and determining which demands the estimator is to meet.
The Resolution comes into effect on the date that follows the date of its publication in the official gazette.
