Thursday, April 28, 2016

NBU cancels compulsory sale of foreign currency on loans from non-residents to pay for imports

The National Bank of Ukraine (NBU) has cancelled the norm on the compulsory sale in the interbank foreign exchange market of funds received by Ukrainian borrowers in the form of loans in foreign currency from non-residents in order to pay for imports, reads a posting on the regulator's website.
The appropriate changes to NBU decree No. 140 dated March 3, 2016, stipulated in NBU order No. 290 of April 26, will come into force from April 29 and will be valid until June 8, 2016.

"From now on, Ukrainian companies won't have to sell foreign currency on loans provided by foreign banks for payment for imports. This exception will apply only to those cases, in which loan funds will be sent by foreign creditor banks directly to non-resident exporters, i.e. without passing to the current account of a resident borrower in the authorized bank," the National Bank said.
According to the NBU, the implementation of the regulation will help increase foreign bank lending to the real economy sector of Ukraine.

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