UNIAN
The Ukrainian Cabinet of Ministers has submitted for consideration by parliament a bill to amend the Law of Ukraine "On the procedure of settlements in foreign currency" No.2265, according to which the deadline for crediting export proceeds is reduced from 180 to 90 days, and the powers to extend this period have been delegated to the National Bank of Ukraine.
"Proceeds in foreign currency shall be credited to the currency accounts of residents in authorized banks within the terms of payment specified in the contract, but no later than 90 calendar days from the date of customs clearance," the document reads.
Under the bill, the extension of the specified period shall require an individual license from the National Bank of Ukraine, whereas previously it required a document from the central executive body that implements state policy in the sphere of economic development (currently the Ministry of Economic Development and Trade).
The cabinet also suggests a cut in the return period with regard to import prepayments, from 180 to 90 days.
In particular, with regard to import operations with deferred delivery exceeding 90 calendar days (previously 180 days) from the date of the advance payment, the bill requires that an individual license from the National Bank of Ukraine be obtained. This function was previously performed by the Ministry of Economic Development and Trade.
As reported earlier, the NBU on February 24 introduced a number of restrictions on the foreign exchange market, including the mandatory inspection of import contracts with an advance payment worth more than $50,000, the obligatory registration of letter of credits to complete import contracts with advance payments worth more than $500,000, and a prohibition on lending to buy currency.
The restrictions are designed to stop the rapid devaluation of hryvnia, which, since the transition to a flexible rate fixing by the NBU in the currency market in 2014 and two months in 2015 has depreciated against the US dollar at the official rate by 3.8 times to a new historic low of 30.01 UAH/USD. On February 27, the National Bank set the rate of hryvnia against the dollar at 27.7631 UAH/USD, up by 2.25 UAH of the historic low.
In addition to these limitations, a number of administrative measures have been put in place in the market, including the 75% mandatory sale of foreign currency proceeds by exporters, a 90-day return period for prepayment on imports, as well as a limit on the maximum amount of currency sales to natural persons per day amounting UAH 3,000, and a limit on the early withdrawal of foreign currency deposits at a level equivalent to UAH 15,000 per day.