On 7 June 2016 the Board of the National Bank of Ukraine (NBU) adopted a new “anti-crisis” Resolution No. 342 (the Resolution.)
The Resolution was adopted to replace the earlier “anti-crisis” Resolution of the NBU No. 140 dated 3 March 2016, as amended, that expired on 8 June 2016. As a general matter, the Resolution partially prolongs the previously effective anti-crisis measures and introduces some simplifications for business.
Among the introduced changes, we note the following:
- The threshold for mandatory conversion of foreign currency proceeds received from abroad into Ukrainian hryvnia was decreased from 75 percent to 65 percent of the amount received.
- The NBU has now allowed repatriation of dividends to foreign shareholders of Ukrainian companies for 2014 and 2015 in the amount not exceeding in each calendar month the higher of (a) US$1 million (in equivalent); or (b) 10 percent of all such dividends that should be paid to a shareholder but not more than US$5 million (in equivalent) in each such calendar month.
- The previous limit of 50,000 UAH (expressed in foreign currency) per day for withdrawal of funds by customers from their FX accounts was doubled to 100,000 UAH.
- The previous limit of 500,000 UAH per day for withdrawal of funds by customers from their accounts was lifted.
- Customers are now allowed to purchase foreign currency for cash in the equivalent of UAH 12,000 per banking day.
Among the prolonged measures we note the following continuing limitations:
- The restriction on early repayment under loan agreements between Ukrainian borrowers and foreign creditors (subject to certain exceptions).
- Restrictions for set-offs under export agreements (subject to certain exceptions).
- Prohibition on banks providing loans in national currency (including prolongation of previously provided credit lines), if such loans are secured by pledges of funds in foreign currency.
- With certain exceptions, banks are still prohibited from purchasing foreign currency for clients (except for private persons), that have their own foreign currency funds (either on current bank accounts or deposit accounts in banks).
- Banks are still prohibited from the purchase and transfer of foreign currency to foreign investors in certain cases concerning the sale of shares/corporate rights in Ukrainian companies as well as the return of capital (e.g. a decrease of a company’s charter capital or the foreign investor’s withdrawal as a participant / shareholder in a company).
- Certain restrictions have been prolonged in respect of transactions for the purchase of precious metals.
The Resolution comes into force on 9 June 2016, save for the provisions on repatriation of dividends which will be effective from 13 June 2016. The Resolution remains in force until 14 September 2016.