Home » Press centre » News

National Bank of Ukraine Outlines Additional Acceptance Criteria for Pledge and Mortgage under Stabilization Loans

19 April 2018

Press Release

 

The National Bank of Ukraine (NBU) has outlined additional acceptance criteria for property pledged or mortgaged under stabilization loans. The goal is to minimize credit risks and prevent nonperformance in full or in part of these bank loans.

 

The new requirements concern insurance of certain types of assets by the insurer compliant with the criteria set out by the NBU, such as:

·         the insurer shall not be a party related to the bank

·         the insurer shall have a valid obligatory reinsurance agreement with an international reinsurer

·         the insurer shall adhere to laws on compliance monitoring

·         the insurer’s license shall be free and clear of any suspension (restrictions) imposed by the National Commission for the State Regulation of Financial Services Markets on at least one of the main insurance services.

 

Respective amendments were introduced by NBU Board Resolution No. 40 to the Regulation On Disbursement of Stabilization Loans to Ukrainian Banks by the National Bank of Ukraine dated 17 April 2018 (Regulation No. 327). Furthermore, Regulation No. 327 is to be harmonized with amendments to laws on seals for legal entities.

 

Resolution No. 40 enters into effect on 20 April 2018.


  Top  
 
Last modification   19.04.2018