NBU Regulation No. 225 dated 31.03.2016 has introduced a number of changes to its regulations aimed at allowing certain international financial institutions to provide financing to Ukrainian borrowers in local currency. Such changes became effective on 7 April 2016.
- IFIs may receive loans from Ukrainian banks in UAH, and further use such funds for UAH loans to Ukrainian companies.
- IFIs may open UAH current accounts and use these accounts to receive UAH payments under loan agreements, guarantees, suretyships, and pledge agreements.
- The UAH current accounts of IFIs may be used for a number of additional transactions, including:
- obtaining and repaying UAH loans from Ukrainian banks;
- transferring UAH funds between their current and investment accounts;
- making payments for goods, works and services (including insurance, legal and notarial fees, and commissions); and
- purchase of foreign currency without submission of additional documents.
- UAH deposits placed by IFIs with Ukrainian banks will no longer be subject to NBU requirements for foreign investments in Ukraine, including the requirements that an investment deposit must be placed for a term of not less than 1 year and may not be withdrawn before the expiration of the agreed term of deposit.
Currently, use of the above is limited to the International Financial Corporation (IFC) and the Nordic Environment Financial Corporation (NEFCO). The EBRD is allowed to use UAH correspondent accounts opened with Ukrainian banks pursuant to an earlier NBU regulation starting from July 2007.
If you would like to receive further information or require assistance in connection with the above, please contact Olexiy Soshenko.