Law on Central Bank's credit register becomes effective in Ukraine from March 4

Law No. 7114-d on amendments to certain laws of Ukraine on establishing and maintaining of the credit register of the National Bank of Ukraine (NBU) became effective on March 4.

The law was published on the website of the parliament's newspaper Holos Ukrayiny (Voice of Ukraine).

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The provisions obliging banks to submit information about their loan operations to the credit register will come into force from April 1, 2018. The provisions regulating the use by banks of information from the credit register to assess credit risks will be applicable from January 1, 2019.

In the process of compiling and maintaining of the credit register, the NBU shall use information from the credit register for financial stability objectives, enhance credit risk management by banks and provide banks with information.

At the same time, banks shall be compelled to provide and regularly update information (this also applies to the Deposit Guarantee Fund) to use the information for credit risk assessment, to notify a customer that his/her information will be recorded in the credit register.

Thereupon, each bank borrower shall be granted access to information hereon recorded in the credit register; be entitled to demand amendments to such information, should there be any dispute about the content.

The bill on the NBU's credit register, which was passed by the parliament on February 6, was signed by President Petro Poroshenko into law on March 1.

The creation of the NBU's credit register is Ukraine's obligation under a memorandum of cooperation with the International Monetary Fund and is a condition for a new tranche of the European Union's Macro-Financial Assistance.