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NBU not to punish credit unions for violations caused by quarantine

KYIV. Oct 23 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) will not apply enforcement measures to credit unions for violations caused by quarantine, the press service of the regulator said on Friday.

Relevant changes are provided for by the NBU Board Resolution No. 110 of October 21, 2021 "On non-application of measures for failure to comply with the requirements limiting the risks on transactions with financial assets of credit unions in connection with the introduction of quarantine", which was published on the NBU website and comes into force on October 23, 2021 and is valid until June 30, 2022.

The NBU in a number of cases will not punish for violation of the requirement, which limits the risks of transactions with financial assets in relation to the share of non-productive assets, if it happened during the period of quarantine and restrictive measures, or was caused by them, it says.

It is indicated that the share of non-productive assets of a credit union should not exceed the size of its fixed capital by more than 15%, and for united credit unions – by no more than 30%.

In addition, the credit union must not violate other requirements limiting the risks of transactions with financial assets and financial regulations.

Also, the credit union must provide a substantiated action plan to eliminate the violation of these requirements by June 30, 2022 and implement it, a press release says.