The National Bank of Ukraine (the “NBU”) has eased some of the existing capital and currency control restrictions by amending the resolution it adopted on 3 September 20151.
What restrictions have been lifted?
Among other things, the NBU has eased the following restrictions:
- The NBU has extended the list of exceptions from the mandatory requirement for legal entities, individual entrepreneurs and representative offices to sell 75% of the foreign currency proceeds received from abroad under the following transactions:
- projects performed according to agreements between the European Union and Ukraine on participation of Ukraine in the international programs of the European Union;
- financial grants received from international financial institutions in which Ukraine is a participant by a Ukrainian legal entity (i) that is financed by such grants and (ii) has the Ukrainian Government as a member of its governing bodies; and
- as collateral credited to the account of a tender operator for the participation of a non-resident in a tender concerning privatization of state-owned assets.
- The restriction on repaying cross-border loans before the maturity date does not apply to cross-border loans issued by international financial institutions of which Ukraine is a member or where Ukraine contractually agreed to treat such loans as entered into with international financial institutions.
- The restriction on registration of (i) amendments to cross-border loans in case of replacement of the creditor/borrower and (ii) local foreign currency loans upon their assignment to a non-resident creditor does not now apply to loan agreements if the loan was provided to the Ukrainian borrowers with the participation of a foreign export credit agency.
These amendments were implemented by the regulation “On Amendments to NBU Board Resolution No. 581 dated 03 September 2015” adopted by Resolution No. 718 of the Board of the NBU dated 22 October 2015.