NBU eased lending conditions for business and farmers amid Russian attacks

The National Bank of Ukraine has introduced a set of changes aimed at preserving access to financing for enterprises in strategically important sectors, including the agro-industrial complex. The decision was made against the backdrop of a worsening security situation and systematic Russian attacks on critical infrastructure. This is reported by Glavkom citing the NBU.

The regulator explained that the new rules are intended to help viable businesses overcome temporary financial difficulties and continue servicing loans. The NBU cites experience with preventive restructurings after crises 2020 and 2022 years and expects that the new relaxations will not pose threats to financial stability.

Restructuring without default

One of the key innovations concerns debt restructuring. Banks were allowed not to recognize a borrower’s default if, due to financial difficulties caused by the full-scale Russian aggression, their debt is restructured for up to one year.

The relaxations will apply to restructurings carried out from 1 July 2026 of the year to 1 September 2027 of the year. At the same time, the bank must have grounds to believe that the borrower’s financial problems are temporary and that they will be able to resume servicing the debt.

New conditions for farmers

The NBU introduced separate relaxations for the agricultural sector due to problems with export logistics. Through 1 September 2027 of the year, there will be special rules for treating agricultural produce as collateral. In particular, the liquidity coefficient of such collateral was increased from 0,4 to 0,75.

Banks will also be able to determine its value based on actual remaining stock of the product at the time of credit risk calculation. The maximum term of a credit agreement with such collateral was increased from 12 to 18 months.

The NBU expects these changes will enable agribusinesses to attract more credit resources. The funds can be directed, in particular, to replenish working capital, store products, and use alternative logistics routes.

What else did the NBU change

The regulator also unified banks’ approaches to accounting for guarantee instruments on a portfolio basis. The changes were developed jointly with international partners, including for broader use of mechanisms provided by the Ukraine Facility program.

In addition, the NBU clarified the rules for determining the number of days past due for loans to individuals in cases where debt is partially or fully repaid using an overdraft or credit card. NBU Governor Andriy Pishnyy explained that the regulator aims to prevent a situation where temporary war-related problems deprive viable enterprises of access to financing.

Recall that earlier the All-Ukrainian Agrarian Council and the Ukrainian Club for Agricultural Business association urged Prime Minister Serhiy Koretsky to postpone raising tariffs of Ukrzaliznytsia for freight transport. In the agricultural sector they state that the government’s decision is made at a critical moment and could deepen producers’ losses, reduce exports, and worsen the economy.