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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of December 27, 2023 No. 191

About approval of the Regulations on regulation of activities of the finance companies having the right to perform activities for provision of guarantees, and introduction of amendments to the resolution of Board of the National Bank of Ukraine of June 25, 2020 No. 85

According to Articles 7, of 15, 55-1, 56, 58 Laws of Ukraine "About the National Bank of Ukraine", Articles 39, of Item 30 of the Section VII of the Law of Ukraine "About financial services and finance companies", for the purpose of settlement of activities of the finance companies having the right to perform activities for provision of guarantees based on the license for activities of finance company, board of the National Bank of Ukraine DECIDES:

1. Approve Regulations on regulation of activities of the finance companies having the right to perform activities for provision of guarantees (further - the Provision) enclosed.

2. Non-bank financial institutions which according to the legislation of Ukraine have the right to provide guarantees based on license for activities on provision of financial services or the license for activities of finance company shall fulfill requirements of the Provision and observe:

1) value of the standard rate of sufficiency (adequacy) of the capital from January 1 to March 31, 2024 - in the amount of at least seven percent;

2) the prudential requirement specified in the subitem 1 of Item 8 of the Section I of the Provision since April 1, 2024.

3. Requirements of Item 2 of this resolution do not extend on:

1) fund of partial guaranteeing the credits in agricultural industry;

2) independent financial intermediaries who acquired the status of financial institutions and obtained licenses for activities of finance companies (further - independent financial intermediaries).

4. To independent financial intermediaries within a month from the date of receipt of the license for activities of finance company to bring the activities into accord with requirements of the Provision and to provide calculation and accomplishment of the prudential requirements determined in the Provision.

5. No. 85 "About ensuring implementation of powers and accomplishment of functions on state regulation and supervision in the sphere of the markets of financial services in questions of supervision of activities of participants of the markets of financial services" (with changes) to exclude Item 35 of appendix to the resolution of Board of the National Bank of Ukraine of June 25, 2020.

6. The resolution becomes effective since January 1, 2024.

Approved by the Resolution of Board of the National Bank of Ukraine of December 27, 2023 No. 191

Regulations on regulation of activities of the finance companies having the right to perform activities for provision of guarantees

I. General provisions

1. This Provision is developed according to the Law of Ukraine "About the National Bank of Ukraine", the Law of Ukraine "About financial services and finance companies" (further - the Financial services act), for the purpose of settlement of activities of the finance companies having the right to perform activities for provision of guarantees based on the license for activities of finance company (further - the non-bank guarantor).

2. Terms in this Provision are used in the following values:

1) counterguarantee guarantee which provides:

the non-bank guarantor for benefit of financial institution which has the right to perform activities for provision of guarantees;

the financial institution having the right to perform activities for provision of guarantees, for benefit of the non-bank guarantor;

2) the standard rate of sufficiency (adequacy) of the capital (dalee-N 1) - the indicator established for prevention of the excessive translation by the non-bank guarantor of credit risk and risk of non-return of assets on creditors of the non-bank guarantor;

3) the standard rate of inventory of liquidity (dalee-N 2) - the indicator determining minimum necessary amount of highly liquid assets of the non-bank guarantor for ensuring accomplishment of the current obligations by it;

4) the standard rate of the maximum risk as like as two peas or group of the connected persons (further - H3) - the indicator established for the purpose of restriction of the risks of the non-bank guarantor arising owing to failure to carry out by the principal or group of the connected persons clients of the non-bank guarantor whose part principal is (further - group of the connected persons), obligations to the non-bank guarantor;

5) accounting system - the software and/or special technical equipment which allows to provide accounting and registration of transactions on provision of financial services in electronic form, and also fulfillment of requirements on submission to the National Bank of Ukraine (further - National Bank) information and the reporting established by the legislation of Ukraine concerning regulation of the markets of financial services;

6) the principal-person, specified in guarantee/counterguarantee as having obligations on the relations provided with guarantee/counterguarantee;

7) the regulatory capital of the non-bank guarantor (further - RK) - the capital which the non-bank guarantor shall have at the order which basic purpose is absorption of the losses caused by risks to which the non-bank guarantor is exposed during the activities, and also ensuring financial stability and stable activities of the non-bank guarantor.

The term "guarantee" is used in this Provision in the value given in Chapter 49 of the Civil code of Ukraine.

Other terms in this Provision are used in the values given in the Financial services act, other laws of Ukraine and regulatory legal acts concerning regulation of the markets of financial services.

3. This Provision establishes:

1) procedure for determination of RK of the non-bank guarantor;

2) obligatory prudential requirements to execution by non-bank guarantors, including the following prudential standard rates: N 1, H2, H3.

4. Requirements of this provision extend to non-bank guarantors, except fund of partial guaranteeing the credits in agricultural industry.

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