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Flexible Conditions for Debt Restructuring of Green Energy Producers Established for Banks

The NBU has established flexible conditions for banks for restructuring the loans granted to debtors that generate green electricity as their main line of business.

These conditions have been implemented to address the crisis events in the renewable energy sector that the provisions of Law No. 810–IX * aim to overcome.

The banks will be able to assess the credit risk of these debtors without applying predetermined factors provided the following requirements are met:

  • the banks amend existing agreements, including by making changes to the terms of restructuring, by 28 February 2021
  • such amendments do not result in more than a 10% reduction in the expected cash flows for the asset (NPV).

According to the requirements of the Regulation On Organization of Nonperforming Exposures Management at the Ukrainian Banks **, the banks choose the most appropriate instruments of debt regulation at their discretion.

Therefore, the NBU has provided for a possibility for the banks to apply restructuring instruments irrespective of the status of the borrower’s indebtedness.

The decision was approved by NBU Board Resolution No. 118 On Specifics of Meeting the Requirements of Certain NBU Regulations on Credit Risk Assessment, dated 18 August 2020. The Resolution comes into effect on 19 August 2020.

* The Law of Ukraine No. 810–IX On Amendments to Certain Laws of Ukraine to Provide Better Support for Production of Electricity from Alternative Energy Sources, dated 21 July 2020.
** Approved by NBU Board Resolution No. 97, dated 18 July 2019.
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