December 28, 2015

NBU made some minor changes to the currency restrictions

By its Resolution “On stabilization of credit and currency control markets of Ukraine” No. 863 dated 4 December 2015 the National Bank of Ukraine again prolonged restrictions on the currency market. However, some restrictions were lifted.

Thus, the mandatory requirement to sell 75% of the foreign currency proceeds shall not apply to loans granted to a resident borrower under loan agreements involving a foreign export-import agency to fulfil its obligations under an import contract with a non-resident. This provision shall apply only in cases, where a foreign lender transfers funds under an import contract with a borrower without these funds being credited to the resident borrower’s account.

In addition, the mandatory sale of foreign currency shall not apply to funds deposited as public procurement bidding security (tender guarantees or pledges) pledged by a non-resident to participate in the public procurement bidding process, which should facilitate non-residents’ access to public procurements.

Nevertheless, due to unstable situation on the currency market, no significant easing of currency restrictions took place, particularly in relation to payment of dividends in foreign currency, repayment of loans to non-residents and abolition of the mandatory requirement to sell 75% of the foreign currency proceeds, which were expected by the market players.

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