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The National Bank of Ukraine (NBU) has continued its liberalization policies in the foreign exchange market, allowing banks early repayment of loans to non-resident banks with a rating of at least A3/A- by Fitch Ratings, Standard & Poor's, and Moody's, according to the NBU website, referring to Resolution No. 33, coming into force April 14.
The banks will also be able to repay ahead of schedule the debts under loans provided by foreign creditors due to funds received from the placement of debt securities outside Ukraine, the document said.
These steps will improve the investment climate in the country and simplify operations of exporters. However, they will not lead to destabilization in the forex market, the NBU said.
Read alsoNBU cuts key rate to 13%The National Bank also increased by five times, up to $5 million, the maximum amount of prepayment on import contracts, which do not require the use of a letter of credit with the confirmation of a first-class bank.
The experience of doubling this limit up to $1 million in September last year showed that this move would not have a significant impact on the volume of such payments, the report said.
Earlier, the National Bank allowed the businesses to pay dividends to foreign investors for 2014-2016, while the maximum amount of relevant transfers abroad was increased fivefold, to $5 million within a month. The businesses will be able to take this opportunity starting May this year.
Since the National Bank's decision in July 2016 to pay dividends for 2014 and 2015, the businesses have already transferred abroad dividends worth $1 billion. At the same time, the purchase of currency for these purposes was evenly distributed over time and therefore did not have a negative impact on the foreign exchange market, according to the regulator's estimates.
Read alsoIMF praises Ukrainian central bank's policyAs UNIAN reported earlier, the NBU plans to ease restrictions with regard to the business market, banks, and individuals, as part of the new concept of currency regulation presented in December 2016.
In particular, from April 5, the National Bank upped the currency purchase ceiling for citizens by 12.5 times, to UAH 150,000 per day, and also reduced the rate of compulsory sale of foreign currency earnings by exporters from 65% to 50%.