The National Bank of Ukraine has changed approaches to banks’ assessment of debtors in order to expand access to loans for businesses in the frontline territories
The National Bank of Ukraine defined new rules for calculating financial results for debtors who conduct business mainly in front-line territories and have suffered from armed aggression of Russia or natural disasters. The purpose of these changes is to maintain and expand the access of such enterprises to credit resources.
Corresponding corrections were made to the resolution of the NBU Board dated February 25, 2022 No. 23 “ On some issues of the activities of Ukrainian banks and banking groups” (with changes) and to the Rules for the operation of banks during martial law approved by this resolution.
In particular, a new approach has been established to assess the debtor’s ability to fulfill his obligations to creditors in the event that his activities are carried out in a territory where hostilities continue or which is on the list of temporarily occupied territories, without a specified date for the end of hostilities.
According to the new rules, the bank can take into account forecast financial indicators from the operational activities of the debtor in cases where he has suffered significant damage to production facilities or property as a result of war or a natural disaster. Previously, banks had the right to use only the actual results of past periods.
Such a decision should facilitate business access to credit, especially in frontline regions. The NBU emphasized that it will continue to flexibly respond to challenges, striving to ensure a balance between financial stability and the economy’s resource needs.
