Based on the Resolution No. 118 of the National Bank of Ukraine “On Specifics of Fulfilment of Requirements of Certain Resolutions of the National Bank of Ukraine on Assessment of Credit Risk” dated 18 August 2020, the National Bank of Ukraine (“NBU”) substantially reduced the number of indicators, based on which a commercial bank must declare default under a loan provided to a RES producer.
The foregoing resolution of the NBU allows the restructuring of the debt of RES producers by either partial write off or capitalisation of interest accrued and overdue for over than 90 calendar days or its conversion into another instrument.
Commercial banks are no longer required to view the above restructuring as risk factors for the purposes of assessing their credit risk.
The above applies if the following conditions are simultaneously satisfied:
- Agreements or amendments to existing agreements on debt restructuring are entered into by 28 February 2021; and
- Amendments to existing agreements related to restructuring do not decrease NPV of the project by more than 10% compared to the amount available as of the date of the NBU resolution.
For more information, pleas contact Dmytro Ivanusa, Partner.