As a part of the ongoing liberalisation of the currency control, the National Bank of Ukraine (the "NBU") adopted Resolution No. 61 dated 10 July 2017 (effective from 11 July 2017) which lifted the following restrictions imposed by the NBU as stabilisation measures in November 2013:

  1. Early repayment

Ukrainian companies (as borrowers under cross border loan/finance agreements) may prepay the relevant cross-border loans, provided that such prepayment is made to a foreign lender that is:

  • a foreign bank; or
  • a subsidiary of an international financial institution (the "IFI"). To benefit from this exception, the IFI may be either a shareholder/participant of such Ukrainian borrower and/or a foreign lender.
  1. Early repayment by Ukrainian banks and new opportunities for converting debt into equity

Ukrainian banks (as borrowers under the cross-border loans/finance agreements) may early prepay the relevant cross-border loans.

The NBU now also allows Ukrainian banks to repay and/or prepay the relevant amounts in foreign currency (including, any accrued interest and other payments, commissions and fees under the loan/finance agreements) directly to a Ukrainian investment account of the foreign lender, provided that the repaid/prepaid amount will be subsequently invested by the foreign lender into the capital of such Ukrainian bank.

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.