NBU Improves The Cross-Border Loans Registration Rules

On 23 March 2017, the National Bank of Ukraine (NBU) adopted amendments to its regulations regarding the registration of cross-border loans, as described further below.

In particular, the following changes will come into force as of 10 April 2017:

• The effective date rule for the assignment of claim rights is cancelled

The requirement that an agreement regarding the cross-border assignment/transfer of claim rights only comes into force upon registration of the loan agreement with the NBU has been cancelled.

Despite this, the relevant agreement must nonetheless be registered with the NBU prior to any cross-border payments being made to the new lender, as the borrower's Ukrainian servicing bank would not be allowed to carry out such payments to the new lender until its registration.