The National Bank has updated currency restrictions: what has changed
21 November 2024 04:03
On November 20, 2024, the NBU amended the current currency restrictions. On the one hand, this should support international cooperation in foreign trade, as well as international technical assistance projects and programs. On the other hand, it should strengthen the discipline of compliance with currency restrictions. This was reported by the press service of the regulator, "Komersant Ukrainian" reports
It is noted that the changes will affect several areas.
Transfer of funds to fulfill obligations under import contracts
Currently, Ukrainian businesses can pay for the import of any product only if the goods are delivered after February 23, 2021.
However, as of November 20, Ukrainian companies were able to pay for the import of goods without limiting the term of their delivery to Ukraine, provided that the funds are transferred to
- a foreign export credit agency (ECA)/a foreign state through its authorized representative/a foreign entity whose members include a foreign state or a foreign bank (provided that the foreign state is a member of this bank)
- other non-residents, provided that they participate in import operations (through lending, insurance, guarantee, surety) of a foreign ECA/foreign state through an authorized person/foreign entity whose members include a foreign state or a foreign bank (provided that a foreign state is a member of this bank).
At the same time, there will be a monthly limit for such transfers of 10% of the amount of overdue debt under the contract for the import of goods (as of November 1, 2024).
Settlements under international technical assistance projects
The changes also apply to settlements under international technical assistance projects.
The National Bank explained that it is now possible to transfer foreign currency from Ukraine for payments under EU-funded international technical assistance/border cooperation projects/programs. At the same time, Ukrainian residents receive technical assistance not only from EU countries.
As of November 20, the NBU has made it possible to transfer foreign currency abroad to make payments under international technical assistance projects, regardless of which state or organization funds such a project.
Repatriation of dividends abroad
It is noted that the regulator closely monitors compliance with the established currency restrictions. The results of the inspections showed attempts to circumvent the monthly limit on the repatriation of dividends.
Therefore, starting from November 20, 2024, Ukrainian companies will be able to take advantage of the possibility of partial repatriation of dividends on corporate rights or shares only if the following conditions are met
- the period of the issuer’s activity from the date of state registration to the date of the relevant transaction is at least 12 months
- at least six months have passed since the foreign investor/non-resident acquired ownership of the corporate rights/shares of the issuer paying dividends before the date of the relevant transaction.
Use of foreign currency loans to purchase securities denominated in foreign currency
The amendments also provide for changes in the use of foreign currency loans for the purchase of securities denominated in foreign currency.
In particular, to minimize the risks of circumventing the current currency restrictions, the NBU has banned the use of foreign currency loans for the purchase of securities denominated in foreign currency effective November 20.
All the above changes were introduced by the NBU Board Resolution No. 136 “On Amendments to the Resolution of the Board of the National Bank of Ukraine No. 18 dated February 24, 2022” dated November 19 and came into force on November 20.
