KYIV, Feb 16 – The National Bank of Ukraine approved regulations allowing synthetic loans, instruments denominated in hryvnias, while all payments between the creditor and the borrower are settled in foreign currency.

Banks-borrowers can raise 'synthetic' loans in hryvnias from any nonresident creditors, not only from international financial institutions (IFIs) a member of which Ukraine is or towards which the country obliged to ensure the legal regulation issued to other IFIs or residents, the NBu said.

The cross-border transactions on these loan agreements will be carried out without registration by the NBU or personal licenses issued by the central bank.