Law of Ukraine No. 6122 "On Introduction of Amendments to Certain Laws of Ukraine on Lending and Stimulation of Foreign Investment" has entered into force on 15 May 2010 upon signing by the President and publication in the official newspaper of the Ukrainian Parliament "Holos Ukrainy".
Law No. 6122 was adopted by the Ukrainian Parliament to abolish a number of restrictions on cross-border loans to Ukrainian borrowers and the unfavourable restrictive requirements on foreign investments into Ukraine which were introduced by Law of Ukraine No. 1533-VI, (the so-called "Anti-Crisis Law") from 24 November 2009 and which were to remain in force until 1 January 2011 (we alerted about this in our Law-Now as of 23 November 2009).
As we mentioned in our Law-Now alert as of 6 May 2010, the Anti-Crisis Law restrictions in respect of early repayment of foreign loans and reduction of their maturity period, as well as the mandatory requirements of cash investment to be made only through special investment accounts, mandatory conversion of foreign currency into Ukrainian hryvnia and registration of foreign investments in cash with the National Bank of Ukraine were to cease their effect with the entrance into force of the Law No.6122.
However, the issue with conflicting provisions of secondary legislation still demanding cash investments to be made in Ukrainian hryvnia and via investment accounts in Ukrainian banks remain unresolved as of today.
We will closely monitor the developments in this areas and will keep you updated.
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The original publication date for this article was 18/05/2010.