On 26 March 2016 Resolution No. 192 of the Management Board of the National Bank of Ukraine (the “Resolution”) became effective. The Resolution relaxes certain of the anti-crisis currency control restrictions which have been in place for nearly two years.
Early repayment of cross-border loans
The Resolution expands the list of exceptions to the current prohibition on early repayment of cross-border loans.
Pursuant to the Resolution, the National Bank of Ukraine (the “NBU”) will register amendments to cross-border loans which relate to:
In addition, the Resolution permits the early repayment of cross-border loans, or parts thereof, which have been made with the participation of a foreign export credit agency.
We note that the early repayment prohibition does not apply in the case of cross-border loans extended by international financial institutions.
Foreign currency transfer restrictions
In accordance with the Resolution, a Ukrainian bank can now make payments, on the basis of an individual licence from the NBU to the investment account of a foreign investor held with such a bank, provided that both of the following criteria are met:
Further intentions of the NBU
The National Bank of Ukraine has stated that it will further relax the existing currency control restrictions if the foreign exchange market and national economy stabilise.
If you would like to receive further information or require assistance in connection with the above, please contact Olexiy Soshenko.