NBU Allows Repatriation of Investments and Broadens Early Repayment Exceptions
Avellum, Kyiv, Ukraine
Tue, May 30, 2017
The National Bank of Ukraine (“NBU”) made important steps towards further relaxation of the temporary currency control restrictions.
With effect from 12 June 2017, the NBU allowed:
(1) foreign investors to repatriate proceeds received from the following:
- sale of debt and equity securities of Ukrainian issuers (for example, bonds and shares)
- sale of equity interests in Ukrainian companies not represented by shares (for example, participatory interests in limited liability companies)
- withdrawal from equity or decrease of charter capital of Ukrainian companies
At the same time, the NBU introduced a monthly cap of USD5 million for purchase of foreign currency and repatriation of investment proceeds abroad. However, this cap will not apply to sale of debt securities on stock exchanges, as well as to sale of Ukraine’s sovereign bonds.
(2) Ukrainian borrowers to make early repayments under foreign currency cross-border loans:
- extended by an international financial institution (“IFI”) as a sole lender or part of a syndicate
supported by IFIs’ guarantees covering (i) standby letters of credit, or (ii) guarantees from foreign banks; provided that the amount of early repayment does not exceed the amount guaranteed by an IFI.
Александра Жидченко | Секретарь
AVELLUM | ул. Владимирская 38, 4 этаж | 01030, Киев, Украина
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