The Resolution amends previous Resolution No. 49 as of 06 February 2014 issued by the National Bank of Ukraine that has placed some material restrictions on foreign exchange transactions.

Specifically, the Resolution cancels the requirement to only fulfill orders of clients (contained in the document for transfer) in any currency where there are funds in the client’s current accounts as at the beginning of the transaction day. Hence, this means overdraft payments are now made available.

Furthermore, the Resolution sets forth clarifications as to the ban on purchases of foreign currency for the purpose of early repayment of credits and loans. In particular, such ban applies to the early repayment of both the principal amount of credits or loans and other contractual payments. The Resolution also stipulates that residents have the right to make early repayments solely from their own foreign currency funds (that are not purchased or raised as credits or loans).

The Resolution sets out in detail the procedure for purchasing foreign currency subject to possible exchange rate fluctuations. The Resolution imposes temporary restrictions on forward contracts.

Pursuant to the Resolution, banks must refuse to credit (advance) clients in foreign currency, if such funds are raised to pay the client’s liabilities in foreign currency—in order to avoid meeting the requirements of the Resolution. These provisions do not apply for purchase of foreign currency for the purpose of paying interest under loan agreements in foreign currency.  

Moreover, the Resolution prescribes that the NBU may impose certain restrictions on banks where their operations result in a disruption to the Ukrainian interbank currency market (in particular in speculative currency exchange transactions).

The Resolution introduces restrictions on payments of hard currency cash by banks from the current and deposit accounts. The limit is up to the equivalent of UAH 15 000 per day for a single client calculated at the official rate of the National Bank of Ukraine. At the same time, banks may effectuate early repayments of hard currency deposits without any restriction in the amount but in the national currency based on the current exchange rate.

The Resolution enters into force as at 28 February 2014 and remains effective until the NBU makes a separate decision, save for the provisions in respect of early repayment of deposits and payments of cash from the current and deposit accounts. These latter provisions become ineffective as at 28 March 2014.