Ukraine's Central Bank has passed a new package of measures to liberalize foreign currency regulations / Photo from facebook.com/NationalBankOfUkraine
The National Bank of Ukraine has approved a new package of measures to liberalize foreign currency regulations, which relax requirements for the mandatory sale of foreign currency and forex transactions with cash money, according to NBU resolution No. 718 posted on the NBU's official website.
The regulations are to become effective as of October 23.
Under the new regulations, a nonresident entity participating in the privatization of state-owned property in Ukraine is exempt from the mandatory sale of assets in foreign currency used as a guarantee deposit for bidding and transferred to accounts of an organizer of a privatization tender.
Exempt from the mandatory sale of receipts in foreign currency under agreements on Ukraine's participation in European Union's international programs and grants from international financial institutions are resident legal entities with the Ukrainian government represented in their board/management.
The regulator also relaxed the requirements for withdrawals of hryvnias in cash at the cashier's desk at a bank or through ATMs limited to UAH 300,000 (about $13,275 at the current official forex rate) per day per client. From October 23, this is not applicable to forex transactions with individuals, which will simplify foreign currency purchases and sales by households.
Also, satisfying numerous requests from businesses, the NBU allowed the registration of the replacement of a creditor or a debtor for foreign currency loans from non-residents if the replacement is related to the liquidation of the lender and its adherence to a new successor creditor. Businesses are also allowed to register amendments to loan agreements if a loan was extended to a resident with a foreign export credit agency's participation.
Simultaneously, the regulator elaborated on requirements for export control, taking into account special aspects of telecommunication companies' operation. From now on, the NBU will allow banks to withdraw from the export control watch list the transactions of clients who have provided documentary evidence of the offset of counter-claims in foreign currency subject to mandatory sale in payments for international telecommunications services (international roaming and international traffic handling).