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On 15 October 2009 the National Bank of Ukraine (the “NBU”) re-introduced the restrictions on the maximum interest rates on long-term, mid-term, and short-term foreign currency loans to the residents of Ukraine, which were effective before the global crisis. In September 2008 the NBU cancelled these restrictions in light of the global financial crisis. The new re-introduced restrictions will come into effect on 15 November 2009.

On 15 October 2009 the NBU adopted Regulation No. 614 “On Certain Issues of Registration of Credit Agreements (Loan Agreements) in Foreign Currency Entered into between Residents-borrowers and Non-residents” (“Regulation No. 614”) which is expected to become effective on 15 November 2009.

Regulation No. 614 abolishes Regulation of the NBU No. 294 “On Amendments to Regulation No. 363 of the Board of the National Bank of Ukraine, dated 3 August 2004, “On the Establishment of the Interest Rates for Foreign Loans of Residents”, dated 25 September 2008 (“Regulation No.294”), which canceled the maximum interest rate limitations for mid- term and long-term foreign currency loans to Ukrainian residents and which previously increased the maximum interest rate for short-term loans (with a maturity of up to 1 year) at the rate not exceeding 11% per annum.

Therefore, starting from 15 November 2009 residents of Ukraine will be permitted to borrow foreign loans with the following maximum interest rate limitations:

for fixed interest rate loans:

for floating interest rate loans:

Furthermore, Regulation No. 614 provides that any amendments to the existing foreign currency loan agreements can be registered with the NBU only if the payments under such loan agreements do not exceed the above described limitations on interest rates, unless such amendments concern change of name, location and/or banking details of resident-borrower/non-resident-lender, or assignment of the loan to a non-resident.