The National Bank of Ukraine has specified conditions for banks' investments related to financial restructuring of bank borrowers' debts.
To make such investments the banks should meet the following requirements:
- the term of banking activity is not less that three years;
- the bank's regulatory capital meets the requirements set forth in Section II Chapter 2 of the Instruction for Regulating Bank Activities in Ukraine (as of today, it amounts to UAH 200 million), or the bank runs the Capitalization Program, and making investments will not lead to non-compliance with the requirements of Section II Chapter 2 of the Instruction or to failure to execute the Capitalization Program within the terms specified in it;
- the bank is not subject to corrective actions (with respect to limitation, termination, or suspension of certain operations).
The above changes are provided for by NBU Board Resolution No. 104 On Amendments to the Instruction for Regulating Bank Activities in Ukraine, dated 20 October 2017, which enters into effect on the day following the day of its official publication.
The changes will facilitate such restructuring, a decrease in NPLs throughout the banking system, and recovery of debtors' business activities.