Distinctions of registration of credit agreements with EBRD

/12
March 2013

 

In a letter dated 13.03.2013, № 29-213/2918-3012 National Bank of Ukraine (NBU) explained some distinctions of registration of credit agreements concluded by residents-borrowers with the EBRD.

In connection with requests from the regional offices of the NBU and banks, the NBU reminded that according to the Decree of the President dated 14/07/92 "On Ukraine's membership in the European Bank for Reconstruction and Development" Ukraine acceded to the Agreement on Establishing the EBRD.

Articles 14 and 15 of the Agreement clearly define the terms and conditions of granting loans by the EBRD. Besides, the said articles of the Agreement do not prescribe the duty to determine the maximum size of the interests rate increase for the purposes of granting the loan.

According to section 2 of Article 21 of the Agreement Member States undertake not to establish any restrictions with regards to receipt, possession, use or transfer by EBRD of currency being received in respect of principal debt, interests, dividends and other charges on loans or by payments of commissions, fees or other charges.

Guided by the mentioned provisions of the Agreement, the NBU explained that drafting a statement on the credit agreement with the EBRD, which is being submitted by the resident-borrower to the territorial department for registration of such agreement, indication in paragraph 9.4 of this statement of information on the maximum interests rate increase is not obligatory.