Until recently, failure to remit export proceeds to a Ukrainian bank within 90 days caused the Ukrainian exporter to suffer a 0.3% daily penalty. With effect from 25 May 1996 Parliament has changed the law on foreign trade settlements. The accrual of the statutory 0.3% daily interest applicable upon failure to meet the 90 days settlement limit is suspended when the Ukrainian party files a lawsuit to obtain performance. The penalty is forgiven if the court ruling is in favour of the Ukrainian party. Additionally, the limitation of the overall amount of the penalty to the outstanding unpaid balance of the debt has been removed. This means that Ukrainian firms in breach of the statutory limit are now likely to face massively increased liabilities.

(Law No 184/96 of 7 May 1996)

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