SALANS' BANKING AND FINANCE LEGAL NEWSLETTER
Salans Kyiv, Ukraine - Legal Market News, Banking and Financial Sector, March 2009, Kyiv, Ukraine, Tuesday, April 14, 2009
KYIV: The latest Salans' Banking and Finance Legal Newsletter was issued today. IN THIS ISSUE:
1. Documents certifying title to a land plot and orders for division or merger of land plots
2. Changes to Regulation on the procedure for regulating banking activities in Ukraine
3. Setting open foreign currency position limits for banks
4. Recent publicly announced Banking and Finance deals in Ukraine handled by Salans’ Kyiv office
1. Documents certifying title to a land plot and orders for division or merger of land plots
Law of Ukraine No. 1066-VI of 05.03.2009 “On amendments to some Ukrainian legislative acts regarding documents certifying title to a land plot and orders for division or merger of land plots”
In Ukrainian law No. 1066-VI of 05.03.2009 “On amendments to some Ukrainian legislative acts regarding documents certifying title to a land plot and orders for division or merger of land plots” changes were introduced to the Land Code of Ukraine, the laws of Ukraine “On Land Management” and “On State Registration of Proprietary Interests in Real Estate and the Limitations Thereof”, in particular:
v division or merger of land plots shall not release such land plots from restrictions or encumbrances except if a restriction (encumbrance) is in existence
over a part of a land plot which has not been included in a newly formed land plot;
v title to a land plot, as well as rights of permanent use of a land plot and lease rights, arise from the date of state registration of such rights;
v title to a land plot (permanent use right) is confirmed not only by state act but also by civil-law agreements.
The law comes into force on 02.05.2009.
2. Changes to Regulation on the procedure for regulating banking activities in Ukraine
Resolution No. 51 of 06.02.2009 of the board of the National Bank of Ukraine «On Amendments to the Regulation on the procedure for regulating banking activities in Ukraine”
Resolution No. 51 of 06.02.2009 of the board of the National Bank of Ukraine introduced amendments to the “Regulation on the procedure for regulating banking activities in Ukraine”, in particular as to setting the regulatory capital requirements; the procedure for reporting on funds attracted and accounting submissions; and the calculation of most economic standards pertaining to banking.
For central and parent cooperative banks, economic standard N3 (“Н3”) (correlation between regulatory capital and total capital) has been set. It is calculated on the basis of consolidated financial accounts.
The resolution came into force on 13.03.2009.
3. Setting open foreign currency position limits for banks
Resolution No. 107 of 28.02.2009 of the board of the National Bank of Ukraine «On amendments to some legislative acts of the National Bank of Ukraine and setting open foreign currency position limits for banks”
Resolution No. 107 of 28.02.2009 of the board of the National Bank of Ukraine introduced amendments to:
v Regulation on the procedure for regulating banking activities in Ukraine No. 368 of 28.08.2001 (Regulation No. 368);
v Regulations on the application of sanctions by the National Bank of Ukraine for violation of banking law No. 369 of 28.08.2001 (Regulation No. 369)
v Regulation No. 325 of 06.08.2003 on executing transactions involving “banking metals” by authorized banks;
v Resolution No. 290 of 12.08.2005 of the board of the National bank of Ukraine “On the introduction of changes to some legislative acts of the National
Bank of Ukraine and setting the open foreign currency position limit for banks” (Resolution No. 290); and
v Regulation No. 290 of 12.08.2005 on the setting, by the National Bank of Ukraine, of open foreign currency positions for banks, in non-cash and cash
forms and supervision of regulatory compliance by authorized banks.
In particular:
v the risk standard for open (long/short term) foreign currency position N13 (Н13) was excluded from Regulation No. 368;
v the 15% long term open exchange currency position limit for freely convertible currency L14-1 (Л 14-1); 5% long term (short term) open exchange
currency position limit for non-convertible currency L15-1, L15-2 (Л15-1б Л15-2) and “banking metals” L16-1, L16-2 (Л16-1 і Л16-2) and 10% long
and short term position limits for forward transactions L17-1, L17-2 (Л16-1, Л16-2), set by Resolution No. 290, were cancelled;
v the list of cases appropriate for the restriction, suspension or cessation of certain types of banking operation, set by Regulation No. 369, was expanded
and amended;
v the penalties for banks’ violation of general (long/short term) foreign exchange position limits L13, L13-1, L13-2 (Л13, Л13-1, Л13-2) were amended;.
v banks should change the amount of their foreign exchange positions in accordance with the new standards within 60 days of the date on which the
regulation came into force.
The regulation comes into force on 23.04.2009, except for the changes to Regulation No. 369, which come into force within 90 days of its state registration in the Ministry of Justice of Ukraine.
4. Recent publicly announced Banking and Finance deals in Ukraine handled by Salans’ Kyiv office
International law firm Salans acted as legal advisor to Ukrainian insurance CJSC "Dovira ta Garantiya", a member of the Russkiy Standart Group, regarding the increase of its statutory fund by an additional issue of shares in Ukraine.
Salans provided legal support on the whole range of legal issues concerning the increase of the statutory fund of the CJSC “Dovira ta Garantiya”, including: drafting corporate documentation; conducting relations with the Securities and Stock Market State Commission of Ukraine, the National Depository of Ukraine, the Securities, Excise Stamps, Strictly Accountable Documents and Holographic Protective Elements Production Control Department (Derzhznak of Ukraine) as well as giving legal advice on related issues.
Lawyers from Salans’ banking and finance group in Ukraine have also advised CJSC "Dovira ta Garantiya" with regard to the development of standard insurance documentation as well as with regard to general corporate law matters in Ukraine.
Lawyers from Salans’ banking and finance group: Natalia Selyakova and Olesya Zhmak acted as legal advisors on this transaction.
ABOUT SALANS: Salans is a full service international law firm. Salans has its offices in Almaty, Baku, Barcelona, Beijing, Berlin, Bratislava, Bucharest, Budapest, Frankfurt, Hong Kong, Istanbul, Kyiv, London, Madrid, Moscow, New York, Paris, Prague, Shanghai, St. Petersburg and Warsaw.
CONTACT: For further information, please contact: Oleg Batyuk, Managing Partner, Kyiv, E-mail: obatyuk@salans.com, Natalia Selyakova, Head of Banking and Finance Group in Ukraine, E-mail: nselyakova@salans.com. SALANS, 49-A, Volodymyrska Street, 2nd floor, 01034 Kyiv, Ukraine, Tel: +380 44 494 4774, Fax: +380 44 494 1991, Website: www.salans.com, E-mail: kyiv@salans.com.
