The National Bank of Ukraine has drafted amendments to the Instruction on the Interbank Transfer of Funds in Domestic Currency in Ukraine (hereinafter - Draft Regulation) approved by NBU Board Resolution No.320, dated August 16, 2006, and registered by the Ministry of Justice of Ukraine on September 6, 2006, as No.1035/12909.

The Draft regulation is intended to streamline the procedure of opening banks’ correspondent accounts and set out the procedure for charging off a bank's correspondent account opened with another Ukrainian bank without recourse to use these funds to settle debts owed by the bank to the National Bank of Ukraine under refinancing agreements.

Adoption of this draft resolution will  facilitate the implementation of amendments to the following Laws of Ukraine: 

• On State Registration  of Legal Entities and Sole Proprietors with regard to the possibility to derive information in electronic format from the Single State Register of Legal Entities and Sole Proprietors to identify a legal entity and open accounts in banks;
• On the National Bank of Ukraine  with regard to the exercise of prevalent and unconditional right by the National Bank of Ukraine  to satisfy any mature claim stemming from refinancing of a bank  by debiting, without any right to appeal, the money owed to it from the bank’s accounts (amendments to Article 73).

The National Bank of Ukraine has published a Draft Regulation for public consultation  on its official website since in accordance with the Law of Ukraine on the Main Principles of State Regulatory Policy in the Sphere of Economic  Activity the Instruction on the Interbank Transfer of Funds in Domestic Currency in Ukraine shall be a regulation  and the amendments thereto shall be subject to promulgation in order to  receive   comments and proposals from legal entities, individuals and  their associations..