Continuation of the currency market liberalization

Within the framework of its gradual liberalization policy, the National Bank of Ukraine (NBU) introduced certain changes to NBU Resolution No. 410 dated 13 December 2016 (as amended) expending exceptions allowing to prepay cross-border loans. These changes were approved by NBU Resolution No. 61 dated 10 July 2017, which came into force on 11 July 2017 and will be effective until cancelled by the NBU.

NBU introduced the following novelties:

  • Ukrainian banks are now allowed to prepay cross-border loans.
  • Ukrainian banks are allowed to repay and prepay its cross-border loans (including interest and other related payments due) to a Ukrainian investment account of the foreign lender, provided that the funds so repaid will be invested subsequently into the regulatory capital of such Ukrainian bank.
  • Ukrainian companies are now allowed to prepay cross-border loans, provided that:
    • Any such prepayment is made to a lender being foreign bank; or
    • Any such prepayment is made to any foreign lender provided that an international financial organization holds a participatory interest or shares of such Ukrainian borrower and/or a foreign lender.

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.