KIEV, Jan. 11 – The National Bank of Ukraine has toughened the conditions for attracting subordinated loans in foreign currency by banks, cutting the maximum acceptable deviation of the interest rate from Libor for the loans.

The decision is stipulated in NBU resolution No. 592 of December 30, 2010, which has been forwarded to Interfax-Ukraine.

The document took effect from January 1, 2011.

According to the document, the maximum acceptable deviation of the interest rate for subordinated loans, taking into account commission fees, forfeits and other fees, is set at no more than Libor for 12-month interbank deposits plus 8% per annum in U.S. dollars.