Cistran Finance Exploring the Spirit of Capitalism's New Frontier

Saturday, August 19, 2017

Nordic Environmental Finance Corporation to open accounts in hryvnia

Nordic Environment Finance Corporation recently granted the right to open current accounts in hryvnia with Ukrainian banks

The National Bank of Ukraine granted the Nordic Environment Finance Corporation the right to open current accounts in hryvnia with Ukrainians banks.

A framework signed September 17, 2009, was established for using such accounts when carrying out transactions to provide loans and guarantees in domestic currency to Ukrainian residents under the projects implemented as part of the framework agreement between the government of Ukraine and the Nordic Environment Finance Corporation.

The International Finance Corporation was granted the right to use domestic currency earlier in order to fund projects when effecting payments and settlements linked to transactions to provide loans and guarantees in the domestic currency to residents.

Additionally, NBU Board Resolution number 172 expanded correspondent account relationships with the European Bank for Reconstruction and Development. This allows the EBRD to open correspondent accounts in hryvnia with any authorized Ukrainian bank. Resolution 172 is on the approval of amendments to regulation on opening and maintaining correspondent accounts of residents and non-resident banks in foreign currency and correspondent accounts of non-resident banks in hryvnia.

Outhryvnia-denominated transactions will be able to be carried by out by EBRD through the correspondent accounts as part of EBRD's activities in Ukraine in accordance with an agreement signed on May 29, 1990, with Ukraine.