Reparation loan: the NBU told about an innovative financial instrument
Kyiv • UNN
The head of the National Bank of Ukraine proposed an innovative mechanism of "reparation credit", in which Ukraine will receive long-term loans from partners with collateral in the form of claims of Ukraine for damages from Russia and guarantees from frozen Russian reserves, which will be used in the event of Russia's refusal to pay reparations.
The head of the National Bank, Andriy Pyshnyi, proposed using an innovative financial instrument — a reparation loan provided to Ukraine with international guarantees from Russian reserves in case of non-payment of reparations by Russia. He wrote about this on his Facebook page, reports UNN.
Thus, during the round table, the idea of a reparation loan was discussed-a long-term loan from Ukraine's partners with security in the form of the right of claim of Ukraine to Russia for the payment of reparations and under the guarantees of Russian reserves, which can be credited by creditors against Ukraine's obligations under the loan if Russia refuses to pay reparations
According to the head of the National Bank, such a mechanism is considered along with the idea of a loan secured by income from Russian assets, because it has certain advantages – flexible in implementation, understandable to policy makers and, according to many of them, less risky from a legal point of view.
"The fact that the expert community and politicians are now generating different ideas about financial engineering that are creative both from a legal and financial point of view is undoubtedly a positive trend. This proves that our international partners are focused on finding effective solutions to provide Ukraine with access to Russian assets," he added.
Recall
World Bank President Ajay Banga expressed his readiness to manage the G7 credit fund for Ukraine, secured by frozen Russian assets for non-military purposes, using the World Bank's experience in managing such donor funds.
