NBU Considers Easing Int’l Borrowing Restrictions for Banks

The chairman of the National Bank of Ukraine’s council, Petro Poroshenko, said at a press conference yesterday that it would hold a hearing with representatives from 30-40 of Ukraine’s largest banks to discuss easing the limitations on the cost of borrowing internationally. According to him, a possible trade-off might be retaining limits on short-term debt, while easing restrictions on long-term loans. In July the NBU approved a decree limiting the maximum interest rate for bank’s foreign borrowings at the average weighted yield of Ukrainian sovereign bonds over the last two quarters. Alexander Viktorov: The decree, which was to come into effect on October 19, would have made it almost impossible for many local banks to borrow internationally. The move was hotly opposed by the banking community and they will welcome any changes by the NBU’s to ease the restrictions.