Considering the favorable situation on the FX market the National Bank of Ukraine (NBU) continues gradual softening of administrative restrictions thus fostering business and investment climate in Ukraine and at the same time without undermining price and financial stability.
First, the NBU has expanded options for foreign investors to repatriate dividends on equity rights and shares accrued in 2017.
Till now the investors could be paid abroad dividends in foreign currency accrued only for 2016 inclusively. At that, limits used to be imposed on amounts of such payments (dividends accrued in 2014-2016 up to USD 5 million per month, dividends for the period before 2013 inclusively - not more than USD 2 million per month).
According to findings of the bank customer survey regarding customer plans to repatriate dividends for the previous year, the NBU had evaluated their potential demand on foreign currency on the interbank market and decided to set a uniform limit on dividends in foreign currency, accrued for all previous years. As of today, Ukrainian companies can pay dividends to foreign investors in foreign currency at the amount under USD 7 million per month regardless of the period, when such dividends were accrued.
The purpose of this limit is to sustain a more stable demand for foreign currency of companies intending to pay dividends to foreign investors, and to alleviate demand impact on the FX interbank conditions, and consequently on the price and financial stability as a whole.
Second, the NBU expanded options for Ukrainian business for early repayment of external loans and borrowings in foreign currency.
Now resident borrowers can repay such loans and borrowings within a monthly limit of USD 2 million (for one resident borrower under the loan agreements serviced by one authorized bank). This NBU decision will enable businesses to better manage their debts to nonresidents.
Third, the NBU expanded the list of business operations, which revenues will not be subject to the surrender requirement.
Today, this requirement of 50% as of April 2017 shall not be applied to funds that a resident company obtained as foreign loans and borrowings for refinancing the current debt to nonresidents or authorized banks under other loans or borrowings. This will aid Ukrainian companies, primarily exporters, in terms of refinancing current liabilities and continued raising funds on foreign markets.
The mentioned softened measures were approved by NBU Board Resolution No. 19 dated 1 March 2018 On Amendments to Some Regulatory Documents of the National Bank of Ukraine. The instruments enter into effect on 3 March 2018.
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