Ukraine's central bank expands opportunities for businesses to repatriate dividends

As reported, the repatriation of dividends for 2014-2016 will continue, as before, within a monthly limit of $5 million, according to Resolution No. 112, which comes into force on November 15.

In addition, the central bank has allowed resident borrowers who are in the liquidation process to repay ahead of schedule their foreign loans in favor of non-residents according to the order of satisfaction of creditors' claims under Ukrainian legislation.

The regulator believes that these steps will not lead to a significant increase in demand for foreign currency, as now the purchase of currency for the repatriation of dividends for 2014-2016 is less than 4% of the total demand in the interbank market.

Read alsoNBU simplifies bank transfers of foreign currency abroadAs UNIAN reported earlier, in June 2016, the National Bank of Ukraine allowed repatriation of dividends accrued to foreign investors for 2014-2015, by setting a limit on the transfer of dividends abroad per person a month within the larger of the values – the equivalent of $1 million, or 10% of the total amount of dividends to be paid.

In May 2017, the NBU allowed businesses to pay dividends to foreign investors for 2014-2016, while the maximum amount of relevant transfers abroad was increased fivefold, up to $5 million per month.

Read alsoUkraine's central bank: State price regulations may help curb inflationAccording to the NBU estimates, businesses from June 2016, or from the moment of lifting the ban on the repatriation of dividends for 2014-2016, withdrew from Ukraine dividends worth $2.118 billion to foreign investors as of early November, which accounted for almost 42% of the repatriation of dividends declared.