On 28 March 2014, the National Bank of Ukraine (NBU) issued new Regulation No. 172 on Regulation of Financial Institution Activities and Hard Currency Transactions, which replaced a recent related regulation dated 6 February 2014, and will be in effect until 1 May 2014.
The new regulation provides for the following changes:
- Application: The restrictions are applicable not just to the banks but to other finance institutions, such as investment funds, credit unions, insurance companies and others.
- Lifting of Loan Repayment Restrictions: Restrictions regarding acceleration of monetary liabilities of residents to non-residents under facility (financial aid) agreements, with foreign currency purchased by a resident in the interbank foreign exchange market, are cancelled. Residents are now allowed to repay such liabilities when due under a contract (including cases of early performance of obligations by resident (in case of amendment agreements) both for the principal amount and for other payments – e.g. interest, fees, penalties, etc.).
- Lifting of Restrictions on Investment Abroad: The ban on investment abroad with foreign currency purchased in the interbank foreign exchange market is lifted.
- Reduction of Time for Foreign Currency Purchases: Terms of bank foreign currency purchase transactions in the interbank foreign exchange market on behalf of legal entities, commercial representative offices and individual entrepreneurs is reduced.
- Early Return of Deposits: Banks are allowed to return foreign currency deposits early and to early repay savings (deposit) certificates denominated in foreign currency in local currency at the purchase exchange rate of an authorized bank on the day of transaction.
- Sale / Purchase of Foreign Currency: It is permitted to sell no more than equivalent of UAH 15,000 in foreign currency to one person per business day per banking institution; and to buy equivalent of no more than UAH 15,000 from one person without identification documents.
- Transfer Abroad: Foreign currency transfers by individuals, as non-commercial transactions, are limited to:
- Equivalent of up to UAH 15,000 per month per person either from individual’s foreign currency bank account or without opening a bank account; and
- Equivalent from UAH 15,000 to UAH 150,000 per month per person only from a foreign currency bank account.
- Withdrawal of Foreign Currency: A person may withdraw foreign currency cash from current and deposit accounts through cashiers and ATMs up to UAH 15,000 at the official NBU rate per day. Such requirements apply to withdrawals both in Ukraine and abroad, regardless of the number of accounts held by a client in one bank. Foreign currency transfers by banks may not be limited. These requirements do not apply to diplomatic missions, consular offices, international finance institutions, representative offices of international finance institutions and their employees if they are not Ukrainian citizens or do not reside permanently in Ukraine and are accredited by the Ministry of Foreign Affairs of Ukraine.