Essence of the Act:
NBU Resolution introduces amendments to bank operating rules during martial law. The main changes concern the procedure for recognizing borrower defaults and calculating credit risk by banks under limited access to state registries. Special conditions for defense-industrial complex enterprises are also introduced.
Structure and Main Provisions:
1. Amendments to NBU Resolution No. 23 dated 25.02.2022:
– New points added regarding termination of borrower default recognition
– Specific features established for credit risk calculation with limited access to state registries
2. Changes to Bank Operating Rules:
– Procedure for determining default for specialized loans clarified
– Rules for calculating financial indicators for financial institutions modified
– Special conditions added for defense-industrial complex enterprises
Key Application Provisions:
1. Banks can terminate borrower default recognition under certain financial conditions
2. With limited registry access, banks may use previous information or rely on contractual obligations
3. For defense-industrial complex enterprises, funds from state contracts are considered when calculating financial indicators
4. Approach to determining financial results for financial institutions has been changed
