The National Bank of Ukraine on July 18, 2020 adopted the Resolution “On Peculiarities of Fulfillment of Requirements of Certain Legislative Acts of the National Bank of Ukraine on Issues of Evaluation of Credit Risks”.
In accordance with the Resolution banks will be entitled to evaluate credit risk of borrowers (and will not have to recognize that the event of default of the borrower occurred due to restructuring the debt) if all following conditions are satisfied:
➡️ agreements or amendments to already executed agreements related to restructuring the debt are linked to restructuring under the Law of Ukraine No. 810-IX dated 21 July 2020 “On Introduction of Amendments to Certain Laws of Ukraine as to Improvement of Conditions of Support for Production of Electricity from Alternative Energy Sources”;
➡️ agreements or amendments already executed agreements related to restructuring the debt are entered into by 28 February 2021;
➡️ amendments to already executed agreements, including conditions related to restructuring does not decrease NPV of the project more than 10%.
The most acceptable instruments to settle the indebtedness are determined by the bank regardless of the status of the borrower.
The Resolution came into force on 19 August 2020, and will probably be able to simplify the restructuring of loans for RES producers.
Link to the original text of the Resolution: https://cutt.ly/QfizwlH
