The National Bank of Ukraine has made it easier for foreign investors to conduct additional capitalization of banks. Today, on October 1, 2015, NBU Board Resolution No.658 On Amendments to NBU Board  Resolution No.182, dated March 31, 2014,  and NBU Board Resolution No. 657 On Amendments to NBU Board Resolution No. 581, dated September 3, 2015 have been approved to this effect.

Resolution No. 657 envisages the possibility for authorized banks to make dividend payments to foreign investors by crediting the amount payable to an investment account opened with an authorized bank in the event of early repayment of obligations under the credit agreement /loan agreement in foreign currency. “This will be allowed only if these funds will subsequently be used to increase the bank’s capital,” said Director of the NBU Banking Supervision Department Kateryna Rozhkova.

Resolution No. 658 has allowed authorized banks to purchase foreign currency provided by foreign investors in the interbank FX market with the aim of increasing the core capital of their banks. The amount of FX purchases shall not exceed the amount of reserves in foreign currencies of the 1st Group of the Classification of Foreign Currencies and Investment Metals.

“Such steps aim to help banks conduct additional capitalization in the fastest manner possible and mitigate the banking system's exposure to foreign exchange risks, which is fully in line with the NBU’s tasks.

The amendments shall take effect from October 2, 2015.