NBU Extends Currency Control Limitations
Avellum, Kyiv, Ukraine
Mon, Dec 19, 2016
With effect from 16 December 2016, the National Bank of Ukraine (“NBU”) once again extended temporary currency control restrictions pursuant to its Resolution No. 410 “On Settlement of Situation in the Monetary and Foreign Exchange Markets of Ukraine”.
All key currency control restrictions previously introduced by the NBU remain in place, including the following:
· prohibition of early repayment of principal and prepayment of interest and other amounts by Ukrainian borrowers under foreign currency loans from foreign lenders (other than loans from certain International Financial Institutions or supported by foreign export credit agencies)
· prohibition of repatriation of funds, which foreign investors obtained from sale of securities of Ukrainian issuers (except for sale of debt securities on stock exchanges) and from sale of equity interests in Ukrainian companies other than shares (e.g., participatory interest in limited liability companies)
· limitations on dividend payments that can be made to foreign investors
· prohibition of any payments on the basis of an individual license of the NBU exceeding in aggregate USD50,000 per one month
· the 65% foreign currency mandatory sale requirement
· maximum 120-day settlement period under export and import transactions
Unlike similar NBU resolutions enacted before, the new NBU resolution does not specify an exact expiration date for most of restrictions. The requirements on 65% foreign currency mandatory sale and maximum 120-day settlement period will be effective until 16 June 2017 (and will then be removed or further extended). All other restrictions will stay in force until cancelled by separate NBU’s decision. The NBU reserved its right to take such decision upon assessing the stability of the Ukraine’s banking and financial systems.
Александра Жидченко | Секретарь
AVELLUM | ул. Владимирская 38, 4 этаж | 01030, Киев, Украина