Continuation of the currency market liberalization
Within the framework of its gradual liberalization policy, the National Bank of Ukraine (NBU) introduced certain changes to NBU Resolution No. 410 dated 13 December 2016 (as amended) expending exceptions allowing to prepay cross-border loans. These changes were approved by NBU Resolution No. 61 dated 10 July 2017, which came into force on 11 July 2017 and will be effective until cancelled by the NBU.
NBU introduced the following novelties:
- Ukrainian banks are now allowed to prepay cross-border loans.
- Ukrainian banks are allowed to repay and prepay its cross-border loans (including interest and other related payments due) to a Ukrainian investment account of the foreign lender, provided that the funds so repaid will be invested subsequently into the regulatory capital of such Ukrainian bank.
- Ukrainian companies are now allowed to prepay cross-border loans, provided that:
- Any such prepayment is made to a lender being foreign bank; or
- Any such prepayment is made to any foreign lender provided that an international financial organization holds a participatory interest or shares of such Ukrainian borrower and/or a foreign lender.