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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of June 30, 2016 No. 351

About approval of the Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities

(as amended on 17-12-2021)

According to Articles 7, 15 and 56 Laws of Ukraine "About the National Bank of Ukraine", to articles 44 and 66 of the Law of Ukraine "About banks and banking activity", for the purpose of determination by banks of Ukraine of the extent of credit risk on active banking activities taking into account the principles and recommendations of the Board of the National Bank of Ukraine Basel Committee on Banking Supervision decide:

1. Approve Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities (further - Regulations on determination of the extent of credit risk) which are applied.

2. To banks of Ukraine:

1) to develop intra bank provisions according to requirements of the Regulations on determination of the extent of credit risk;

2) as of September 01, 2016, on October 1, 2016, on November 01, 2016, on December 1, 2016 and on January 1, 2017 to make calculation of the extent of credit risk in the test mode and till September 26, 2016, on October 26, 2016, on November 28, 2016, on December 26, 2016 and on January 26, 2017 respectively to inform the National Bank of Ukraine in the form established by it;

3) since January 3, 2017 to perfrom calculation of the extent of credit risk according to requirements of the Regulations on determination of the extent of credit risk.

3. Requirements of Items 48 and 63 of the Section IV of Provisions on determination of the extent of credit risk regarding confirmation by the auditor of the financial reporting of debtors / consolidated financial statements of groups of the legal entities who are under general control will be applied by bank starting with the financial reporting for 2017.

Recommend to banks to apply the specified requirements starting with the financial reporting for 2016.

3-1. Banks apply, starting with the financial reporting for 2019, the following requirements:

1) paragraph of the third subitem 17 of Item 165 of the Section XVIII of the Regulations on determination of the extent of credit risk;

2) the paragraph of the fifth subitem 17 of Item 165 of the Section XVIII of the Regulations on determination of the extent of credit risk regarding discrepancy of the annual financial reporting of debtor/group of legal entities under general control which the debtor, to requirements of paragraph two of the subitem 1 of Item 48 of the Section IV of this provision treats.

4. Banks for the purpose of ensuring fulfillment of requirements of Item 6 of article 15 of the Law of Ukraine "About providing the rights and freedoms of citizens and legal regime in temporarily occupied territory of Ukraine" (further - the Law on temporarily occupied territories) the temporary occupation having the right to determine during term class of mortgage loan debtors, to the presented persons who live in temporarily occupied territory determined according to article 3 of the Law on temporarily occupied territories or moved from it if object of mortgage is the property (except real residential estate, which total area exceeds the indicators established in article 265 of the Tax Code of Ukraine) located (registered) in the territory which after the conclusion of such mortgage agreement was temporarily occupied and which based on the Law on temporarily occupied territories are exempted from obligation of repayment of the main mortgage loan amount and the added percent on them, proceeding from information which is available in bank on the date of entry into force of the Law of Ukraine "About recognition voided the Law of Ukraine "About creation of the free economic zone Crimea and about features of implementation of economic activity in temporarily occupied territory of Ukraine" and modification of some legal acts of Ukraine.

5. To allow banks of Ukraine in case of application of the Regulations on determination of the extent of credit risk till January 1, 2019:

1) No. 146 Is excluded according to the Resolution of Board of the National Bank of Ukraine of 22.12.2018;

2) No. 146 Is excluded according to the Resolution of Board of the National Bank of Ukraine of 22.12.2018;

3) in case of accomplishment of the requirement of Item 162 of the Section XVII of the Regulations on determination of the extent of credit risk not to apply the sign of the debtor/partner determined in the subitem 3 of Item 162 of the Section XVII of the Regulations on determination of the extent of credit risk;

To apply 4) according to the subitem 4 of Item 162 of the Section XVII of the Regulations on determination of the extent of credit risk measure value "short-term and long-term obligations to operating profit (loss) to depreciation deduction / operating profit (loss) from sales of products (goods, works, services) for the end of the last accounting period" - more than 7 on the loans granted by bank before entry into force of this resolution;

5) when calculating the extent of credit risk not to apply regulation of subitem 3-1 of Item 121 of the Section X of the Regulations on determination of the extent of credit risk.

5-1. Banks during application of regulations of the Regulations on determination of the extent of credit risk determine the number of days of recognition of asset by the unemployed since January 3, 2017.

5-2. During application of the Regulations on determination of the extent of credit risk to allow banks of Ukraine till January 01, 2021 during determination of class of debtor bank based on assessment of financial condition not to apply regulation of subitem 1-1 of Item 82 and Item 85 of the Section VI of the Regulations on determination of the extent of credit risk regarding observance of economic standard rates by debtor bank (except standard rates of H7 and H9) established by National Bank.

5-3. To permit banks of Ukraine in case of application of the Regulations on determination of the extent of credit risk till January 01, 2022:

1) during determination of class of debtor bank based on assessment of its financial condition not to apply regulation of subitem 1-1 of Item 82 and Item 85 of the Section VI of the Regulations on determination of the extent of credit risk regarding observance by debtor bank of economic standard rates of H7 and H9, established by National Bank;

2) No. 143 Is excluded according to the Resolution of Board of the National Bank of Ukraine of 17.12.2021

5-4. During application of the Regulations on determination of the extent of credit risk to allow banks of Ukraine till July 01, 2021 when calculating the extent of credit risk for the credit under the investment project independently to choose procedure for determination of value of coefficient of probability of default of the debtor - the legal entity from provided in Sections IV and IV-1 of the Regulations on determination of the extent of credit risk.

5-5. To banks of Ukraine:

1) till September 20, 2021 to develop/finish intra bank regulations on determination of the extent of credit risk on the specialized credit;

2) as of November 1, on December 1, 2021 to perfrom calculation of the extent of credit risk for the specialized credit in the test mode and till November 30, on December 30, 2021 respectively to inform the National Bank of Ukraine in the form of results of calculation established by it;

3) since December 31, 2021 to perfrom calculation of the extent of credit risk for the specialized loans granted after October 1, 2021 according to requirements of the Regulations on determination of the extent of credit risk for determination of the extent of credit risk for the specialized credit.

5-6. Banks have the right till December 31, 2022 (inclusive) when calculating the extent of credit risk:

On the loans under the investment project granted about day of entry into force of this resolution to apply 1) during determination of value of coefficient of probability of default of the debtor - the legal entity according to the procedure, provided in the Section IV-1 of the Regulations on determination of the extent of credit risk in the edition operating about day of entry into force of this resolution or the procedure provided in the Section IV of Provisions on determination of the extent of credit risk;

2) not to apply regulation of subitem 15-2 of Item 5 of the Section I of the Regulations on determination of the extent of credit risk regarding not excess of the amount of funds deposited by the initiator of the project under agreements which conditions provide return of these fees after complete repayment by the debtor - the legal entity of obligations on the specialized credit, over the amount of the fees brought on irretrievable basis.

5-7. To banks of Ukraine which during implementation of the changes in Regulations on determination of the extent of credit risk made by the resolution of Board of the National Bank of Ukraine of January 26, 2021 No. 8 "About approval of Changes to Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities" based on judgment of bank, made disbandment of groups of financial assets with uniform characteristics with their temporary transfer on assessment on individual basis for the subsequent transfer to assessment with the simplified approach, during decision making about transfer of such assets to assessment of credit risk with the simplified approach to permit not to apply till October 01, 2021:

1) the default sign determined in the subitem 17 of Item 165 of the Section XVIII of the Regulations on determination of the extent of credit risk;

2) information on the 10th class of the debtor - the legal entity in the Credit register of the National Bank of Ukraine owing to recognition of default by bank on the sign determined in the subitem 17 of Item 165 of the Section XVIII of the Regulations on determination of the extent of credit risk.

5-8. During application of the Regulations on determination of the extent of credit risk to permit banks of Ukraine till December 31, 2023 when calculating the extent of credit risk not to apply regulation of the subitem 3 of Item 107 of the Section X of this provision.

6.  No. 5 is excluded according to the Resolution of Board of the National Bank of Ukraine of 16.01.2017

7. Recognize invalid:

1) the resolution of Board of the National Bank of Ukraine of January 25, 2012 No. 23 "About approval of the Regulations on procedure for forming and use by banks of Ukraine of reserves for compensation of possible losses on active banking activities", registered in the Ministry of Justice of Ukraine on February 15, 2012 on No. 231/20544;

2) the resolution of Board of the National Bank of Ukraine of November 30, 2012 No. 499 "About introduction of amendments to the resolution of Board of the National Bank of Ukraine of January 25, 2012 No. 23", registered in the Ministry of Justice of Ukraine on December 20, 2012 at No. 2122/22434;

3) the resolution of Board of the National Bank of Ukraine of March 11, 2013 No. 82 "About approval of the Procedure for reservation of means on the created reserves on credit operations in foreign currency with borrowers who have no documentary confirmed expected receipts of currency earnings", registered in the Ministry of Justice of Ukraine on March 29, 2013 at No. 519/23051;

4) Item 2 of the resolution of Board of the National Bank of Ukraine of June 19, 2013 No. 237 "About modification of some regulatory legal acts of the National Bank of Ukraine", registered in the Ministry of Justice of Ukraine on July 12, 2013 for No. 1175/23707;

5) the resolution of Board of the National Bank of Ukraine of October 8, 2013 No. 399 "About modification of the Procedure for reservation of means on the created reserves on credit operations in foreign currency with borrowers who have no documentary confirmed expected receipts of currency earnings", registered in the Ministry of Justice of Ukraine on October 24, 2013 at No. 1811/24343;

6) the resolution of Board of the National Bank of Ukraine of November 19, 2014 No. 727 "About modification of the Regulations on procedure for forming and use by banks of Ukraine of reserves for compensation of possible losses on active banking activities";

7) the resolution of Board of the National Bank of Ukraine of October 20, 2015 No. 715 "About modification of the Regulations on procedure for forming and use by banks of Ukraine of reserves for compensation of possible losses on active banking activities";

8) Item 1 of the resolution of Board of the National Bank of Ukraine of October 27, 2015 No. 737 "About modification of some regulatory legal acts of the National Bank of Ukraine";

9) the resolution of Board of the National Bank of Ukraine of November 26, 2015 No. 830 "About modification of the Regulations on procedure for forming and use by banks of Ukraine of reserves for compensation of possible losses on active banking activities";

10) the resolution of Board of the National Bank of Ukraine of January 28, 2016 No. 38 "About modification of the Regulations on procedure for forming and use by banks of Ukraine of reserves for compensation of possible losses on active banking activities".

8. To department of methodology (Ivanenko N. V.) to bring contents of this resolution to the attention of banks of Ukraine for management and use in work.

9. To impose control over the implementation of this resolution on the acting as the vice-chairman of the National Bank of Ukraine Rozhkova K. V.

10. The resolution becomes effective from the date of, its official publication following behind day, except Item 7 of this resolution which becomes effective since January 3, 2017.

Acting as chairman

Ya. V. Smoly

Approved by the Resolution of Board of the National Bank of Ukraine of June 30, 2016 No. 351

Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities

I. General provisions

1. This Provision determines evaluation procedure banks of Ukraine (further - banks) the extent of credit risk by active banking activities (further - credit risk).

2. This Provision establishes the minimum requirements to banks by determination of the amount of the expected losses (losses) on active banking activities as a result of realization of credit risk.

3. This Provision is developed according to the Laws of Ukraine "About banks and banking activity", "About the National Bank of Ukraine".

4. The approaches determined by this Provision are based on the principles and recommendations of Basel Committee on Banking Supervision, including application of components of credit risk (EAD - exposition under risk, PD - probability of default of the debtor/partner, LGD - loss in case of default).

5. The terms used in this Provision are used in the following values:

1) active banking activity (further - asset) - transaction which is considered by bank according to active balance or off-balance accounts of the Chart of accounts of the financial accounting of banks of Ukraine approved by the resolution of Board of the National Bank of Ukraine of September 11, 2017 No. 89 (with changes) (further - the Chart of accounts). All types of credit operations, transactions on investment of funds on correspondent accounts in other banks, transaction on acquisition of securities, receivables, including receivables on economic activity, other active banking activities, including the income added on all these transactions belong to such transactions;

2) outsourcing - transfer on contractual basis of function of bank concerning verifications of presence and condition of property in pursuance of the organization of any pattern of ownership provided that:

in the agreement frequency, procedure and conditions of accomplishment by the outsourcer of such checks, procedure are determined by bank of control of proper accomplishment by the outsourcer of this function;

the bank claimed and adheres to intra bank procedures of transfer to the outsourcer of this function, and also on control of proper accomplishment by the outsourcer of such checks;

the bank provided control of proper realization by the outsourcer of such checks on permanent basis;

3) the outsourcer - the organization of any pattern of ownership on which accomplishment the bank transfers function on verification of presence and property conditions which activities conform to the requirements of the legislation of Ukraine and requirements determined by bank taking into account this provision;

4) debt on asset - the asset carrying amount determined according to regulatory legal acts of the National Bank of Ukraine (further - National Bank) on financial accounting, increased by the amount of the reserve created by it, and also increased/reduced by the amount of discount and/or writedown/award.

For means on demand in other banks and term deposits (deposits) placed in other banks which are considered on the amortized cost asset carrying amount except the adjustments stated above, it shall be in addition increased by the amount of passive account balance on accounting of imputed incomes;

5) the debtor - the party in the obligation (the legal entity, including the issuer of securities, or physical person) which shall pay debt / to fulfill the requirement of bank in accordance with the terms of the issuer imprisoned to agreements/obligations on the securities placed on its own behalf;

6) budgetary institution - public authority, local government body, and also the organization created by them in accordance with the established procedure which completely contains at the expense of the government or local budget;

7) losses in case of default (LGD) - component (coefficient) of calculation of the extent of credit risk reflecting the wastage rate (losses) owing to default of the debtor / partner;

8) group of the connected partners - two or more partners legal entities, according to requirements of Chapter 1 of the Section VI of the Instruction about procedure for regulation of activities of banks in Ukraine approved by the resolution of Board of the National Bank of Ukraine of August 28, 2001 No. 368, registered in the Ministry of Justice of Ukraine on September 26, 2001 at No. 841/6032 (with changes) (further - the Instruction No. 368), determined as bearing general economic risk;

9) group of legal entities under general control - two or more legal entities who are under general control:

constitute consolidated financial statements under International Financial Reporting Standards or

to which requirements for creation of consolidated financial statements according to requirements of the legislation of Ukraine are applied, or

constitute the combined financial reporting with observance of International accounting standards, including for the purpose of ensuring fulfillment of requirements of this provision;

10) default of the debtor/partner - condition in the relations between bank and the debtor/partner which is characterized by the signs determined in the Section XVIII of this provision;

10-1) operational stage of the project - project implementation stage on the specialized credit which begins to be effective after completion of preoperational stage of the project, but not later than:

behind project financing - in time, come earlier from two: 365 calendar day from the date of the planned termination of construction according to the initial scheduled plan of project implementation based on which the bank makes the decision on provision of the specialized credit, or 365 calendar day from start date of generation of cash flows from operating activiies of the debtor - the legal entity owing to project implementation;

behind object financing - in time, come earlier from two: 180 calendar day from start date of generation of cash flows from operating activiies of the debtor - the legal entity as a result of project implementation according to the initial scheduled plan of project implementation based on which the bank makes the decision on provision of the specialized credit, or 90 calendar day from the date of recognition in financial accounting of the debtor - the legal entity of asset object of fixed asset;

for financing of real estate which generates the income (except the apartment apartment house), - in time, come earlier from two: 365 calendar day from the date of the planned termination of construction according to the initial scheduled plan of project implementation based on which the bank makes the decision on provision of the specialized credit, or 180 calendar day from the date of recognition in financial accounting of the debtor - the legal entity of asset object of the main means / the investment real estate;

for financing of real estate which generates the income (the apartment apartment house), - day of commissioning of the facility;

11) exposition under risk (EAD) - the component of calculation of the extent of credit risk, corresponds to debt on asset which is under risk of default of the debtor / partner;

12) replacement of asset - derecognition of one asset owing to recognition of another concerning the same debtor / partner;

13) probability of default (PD) - component (coefficient) of calculation of the extent of credit risk reflecting probability of the termination of accomplishment by the debtor/partner of the obligations;

13-1) interval coefficient of servicing (covering) of debt (DebtService Coverage Ratio interval/DSCRi) - indicator which is calculated at least once in three months based on data of the quarter financial reporting of the debtor as indicator ratio "net movement of means from operating activities" and amount of payments according to obligations of the debtor - the legal entity on the raised funds for project implementation (the credits, loans, debt securities) which were subject to payment in reporting quarter including unpaid payments which were subject to payment in previous periods;

13-2) coefficient of sufficiency of money from operating activiies of the debtor - the legal entity for debt servicing during effective period of the credit agreement (Loan Life Coverage Ratio/LLCR) - indicator which is calculated as ratio of current value of future cash flows from operating activiies of the debtor - the legal entity which will be generated only owing to project implementation for the period of time from reporting date before end date of action of the credit agreement and total volume of debt of the debtor - the legal entity on reporting date on the raised funds for project implementation (the credits, loans, debt securities);

13-3) coefficient of sufficiency of money from operating activiies of the debtor - the legal entity during useful life (operation) of asset/object for debt servicing on the funds (Project Life Coverage Ratio/PLCR) raised for project implementation - indicator which is calculated as ratio of current value of future cash flows from operating activiies of the debtor - the legal entity which will be generated only owing to project implementation for the period of time from reporting date before end date of useful life (operation) of asset/object and total volume of debt of the debtor - the legal entity on reporting date on the raised funds for project implementation (the credits, loans, debt securities);;

14) coefficient of credit conversion (CCF) - the coefficient reflecting quantitative probability that the exposition under risk according to financial liabilities which is considered on off-balance accounts of the Chart of accounts will become balance sheet exposition;

15) providing liquidity rate - the quantitative index characterizing decrease in market value of the property provided in providing on credit operation which can be received in case of sale of such property in time is much shorter than the term of exposition of similar property during which it can be sold at the price equal to market (fair) value, and also considers the minimum level of expenses on realization of providing, Ukraine founded on regulations of the legislation;

15-1) coverage ratio of rent Ploshchad (Vacancy rate/VR) - indicator which reflects share of the area which is not occupied under lease in total area of rental real estate and is calculated as ratio of number of square meters of not occupied under lease of space and total area of object of lease;

15-2) coefficient of participation of the initiator of the project in financing of the project (financial leverage) (Debt to Equity Ratio/DER) - indicator which is calculated as ratio on reporting date of amount of obligations of the debtor - the legal entity on the raised funds for project implementation (the credits, loans, debt securities, except funds deposited by the initiator of the project under agreements which conditions provide return of these means after complete repayment by the debtor - the legal entity of obligations on the specialized credit) and the size of fees of the initiator of the project on irretrievable basis / under agreements which conditions provide return of these fees after complete repayment by the debtor - the legal entity of obligations on the specialized credit, in the amount of, not exceeding the amount of the fees brought by the initiator of the project on irretrievable basis;

15-3) company of special purpose (SPE) - the legal entity who is not the face tied with bank according to requirements of article 52 of the Law of Ukraine "About banks and banking activity" which owner is initiators/initiators (further - the initiator) the project which answers at the same time following conditions:

performs activities for the purpose of project implementation on the specialized credit for the territories of Ukraine. Value of specific weight of the income from activities for projects on the specialized credit in total amount of net income from sales of products (goods, works, services) [f. 2 (f. 2nd, 2 ms) 2000 gr. 3] according to the quarter financial reporting for the last 12 months constitutes 90 and more percent;

has control over asset/object which is constructed/is acquired/is controlled owing to project implementation;

16) the partner of bank - any legal entity or physical person having relations of financial nature with bank. The partner can have at the same time with bank relations of other nature, including labor;

16-1) control over asset/object - capability to manage use of asset/object and to receive all benefits from it, including opportunity to prohibit to other subjects of managing to manage use of asset/object and to receive benefits from it, according to the International Financial Reporting Standard (IAS) 15 "Income from contracts with clients";

17) credit history of the debtor/partner - set of information concerning discipline of execution by the debtor/partner of the obligations, including information obtained from the Credit register of National Bank (further - the Credit register);

18) credit operation - type of the active banking activities connected with placement of the funds raised by bank in such way: their provisions in temporary use or adoptions of obligations about provision of certain amount of means; provisions of guarantees, guarantees, letters of credit, acceptances, avals; placements of deposits; carrying out factoring transactions and transactions of financial leasing; issuance of credits in the form of accounting of bills of exchange, in the form of transactions of the return repo; any prolongation of repayment period of debt which is provided in exchange for the obligation of the debtor on return of outstanding amount, and also on obligations on interest payment and other charges on such amount (payment deferral) of payment by installments of payment for the assets sold by bank;

18-1) credit rating on the international scale - the long-term credit rating of the debtor/country of the location of debtors/securities determined by one of such rating agencies as s "Standard & poor"", "Fitch Ratings" and "Moody" s Investors Service";

19) credit risk (CR) - the amount of the expected losses (losses) (EL) on asset as a result of default of the debtor/partner;

20) cumulative coefficient of servicing (covering) of debt (DebtService Coverage Ratio cumulative/DSCRc) - indicator which is calculated as ratio of future cash flows from operating activiies of the debtor - the legal entity which will be generated only owing to project implementation for the period of time from reporting date before end date of action of the credit agreement, and the total volume of payments according to obligations of the debtor - the legal entity on the raised funds for project implementation (the credits, loans, debt securities), subject to payment for this period of time;

20-1) future cash flow from operating activiies of the debtor - the legal entity (Future Cash Flow from Operating activities/FCFO) - indicator of net movement of means from operating activities of the debtor - the legal entity on the specialized credit according to the business plan of the project which is determined according to requirements, the established Provision (standard) of financial accounting 1, to measure definition of net movement of means from operating activities of form No. 3 or No. 3-k of "Cash flow statement" and which present cost is determined using initial effective rate of percent on the specialized credit (for the financial liability with floating interest rate - effective rate of percent which was calculated during the last change of nominal interest rate);

20-2) object financing - financing (crediting) of acquisition of asset/object, including sea, aircrafts, companions, railway vehicles of railway transport / cars, vehicle park, debt repayment source on which are the cash flows from operating activiies generated owing to management (use/transfer to lease/leasing to the third party) of such asset / object;

20-3) preoperational stage of the project - project implementation stage on the specialized credit during which determination of financial performance of multiple-factor model of assessment of financial condition of the debtor - the legal entity is based on forecast cash flow;

21) judgments of bank - the reasoned decision of managerial personnel / collegiate organ of bank according to credit risk on active banking activities based on is documented:

the principles determined in Item 13 of the Section II of this provision;

compliance of the actual actions for determination of each of components of assessment of credit risk to requirements of this provision and intra bank provisions;

the complex and objective analysis of all information which influences determination of the size of components and factors (events, signs) estimates of credit risk;

The own experience of bank based on reliable, continuous, up-to-date, complete and complete statistical data which accumulation period constitutes at least five last years in a row (for newly created banks - the period from the beginning of activities) preceding settlement date of credit risk or for longer period (in the presence) (further - own experience of bank). Statistical data shall constitute rational set of primary data (including data for the periods of phases of economic growth and crisis) which provide high representativeness, forecasting accuracy and do not lead to misstatement of total;

providing complete, timely and objective assessment of credit risk with respect for the principles determined by this Provision;

22) solvency - capability of the debtor/partner of bank to perfrom calculations for all types of the obligations in accordance with the terms of agreements;

22-1) project - the project which financing is performed by one of types of specialized crediting (credit);

22-2) project financing - financing (crediting)/refinancing of construction of assets/objects, including nuclear power plants, power plants, assets/objects of the industry and infrastructure which has the form of capital construction, debt repayment source on which are cash flows from operating activiies which are generated as a result of use/operation of such asset / object;

23) the procedure of financial restructuring - package of measures for debt restructuring and/or economic activity of the debtor by holding procedure of voluntary financial restructuring or the procedure of the pre-judicial sanitation which is carried out with the features established by the legislation of Ukraine and/or the international practice;

24) restructuring - change of essential conditions on the provisional agreement for the purpose of mitigation of requirements to the debtor in connection with financial difficulties of the debtor and need of creating favorable conditions for accomplishment of obligations by it on asset [in particular: interest rate realignment; partial forgiveness of debt; change of the debt repayment schedule (terms and repayment sums of principal debt, payment of percent/commissions); change of the size of the commission] by the conclusion of the supplementary agreement with the debtor;

24-1) specialized credit - type of long-term financing (crediting) of the debtor - the legal entity in one of the following directions: project financing, object financing, financing of real estate which generates the income which answers at the same time following conditions:

provided to the debtor - to the legal entity which is the company of special purpose (SPE);

financing of the project is performed jointly by the initiator and banks/participating banks of consortium;

the bank acquired as a deposit corporate laws of the debtor - the legal entity on the specialized credit (except object financing) and has the first-priority right to acquisition them in property in case of failure to carry out by the debtor of obligations on the specialized credit (for konsortsiumny crediting - in proportion to share of participating banks of consortium in the project in accordance with the terms of the agreement on konsortsiumny crediting);

the bank has the first-priority right on:

receipt of cash flows / the expected cash flows of the debtor - the legal entity which are generated/will be generated as a result of project implementation on the specialized credit;

acquisition in property of asset/object which is constructed/is acquired/is controlled as a result of project implementation on the specialized credit in case of non-execution / improper execution by the debtor of obligations according to the credit agreement;

the bank acquired as a deposit property rights for asset/object which is under construction, or asset/object which is acquired/is controlled as a result of project implementation on the specialized credit (for konsortsiumny crediting - in proportion to share of participating banks of consortium in the project in accordance with the terms of the agreement on konsortsiumny crediting);

24-2) stress testing of the debtor - the legal entity (further - stress testing of the debtor) - the analysis of solvency of the debtor - the legal entity timely and in full to fulfill the obligations to bank in the conditions of stress on the specialized credit;

25) it is excluded;

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