On 29 August 2014 the National Bank of Ukraine (the NBU) imposed restrictions on lending in foreign currency for the purpose of using such foreign currency within the domestic market of Ukraine.
In particular, the NBU prohibited authorized banks to provide foreign currency loans for use at domestic market. The only exception to this rule applies where loans in foreign currency are granted for payment under foreign economic obligations.
In case of violation of this requirement, the NBU will apply to banks stringent measures up to the revocation of the general banking license for currency transactions.
In addition, the NBU restricted banks release from control the client's export transactions on the basis of documents on termination of obligations due to set-off, which in practice could trigger difficulties related to such set-off.
The aforementioned restrictions were introduced further to the Resolution of the NBU dated 28 August 2014 No. 534 'On introduction of changes to the Resolution of National Bank of Ukraine dated 20 August 2014 No. 515' and shall be effective till 21 November 2014, if not changed by the relevant resolution of the NBU.