Due to the introduction of martial law in Ukraine, on 24 February 2022 the National Bank of Ukraine imposed a general moratorium on cross-border payments outside of Ukraine. Among others, the moratorium prohibits external debt servicing payments for Ukrainian borrowers with certain exceptions for loans provided by international financial institutions (e.g., EBRD, EIB, IFC, NIB, BSTDB) ("IFIs") and loans guaranteed by the Ukrainian government. Over time, the regulator has gradually lifted some of the restrictions, including by allowing such borrowers to repay a portion of accrued interest and extending the list of permitted payments which involve the participation of IFIs.
Continuing the relaxation of the moratorium regime, from 16 June 2023, the National Bank of Ukraine has further extended the list of exempted payments. Ukrainian borrowers are now allowed to service their external loans that were:
- secured by a guarantee or surety of an IFI; or
- granted by way of lending, or were insured or guaranteed, by:
- a foreign export credit agency;
- an institution authorised by a foreign state; or
- a foreign lender whose shareholders include a foreign state or a foreign bank with shares fully or partially owned by a foreign state.
Servicing debt under the loans listed above may include repayment of both principal and interest, as well as any other amounts payable to foreign lenders pursuant to the loan agreement. At the same time, however, early repayment or acceleration of payment in case of an event of default is still not allowed.
For more information, please contact Olexiy Soshenko, Managing Partner at Olexiy.Soshenko@redcliffe-partners.com
