I. History
Until May 7, 1997, much to the ongoing dismay of the Western
financial world, debt financing was not an option for most
Ukrainian companies. The key obstacle was the now-cancelled
National Bank's Provision No. 329, dated December 29, 1995,
which strictly required all Ukrainian residents to obtain a special
license prior to receiving loans in foreign currency from foreign
creditors. Naturally, such licenses were not generally granted to
the average Ukrainian company, barring most Ukrainian enterprises
from dealing with foreign creditors altogether.
In light of the above prohibition, the National Bank's
Resolution No. 144 "On Adoption of the Regulations 'On the
Procedure of Registration of Loans in Foreign Currency Received by
Residents From Foreign Creditors," dated May 7, 1997, was
nothing short of revolutionary: the beginning of debt financing
practices in Ukraine, at last! Resolution No. 144 specifically
granted Ukrainian resident legal entities the
