Acting towards the improvement of investment climate in Ukraine and in view of the favorable FX market, the National Bank of Ukraine (NBU) continues gradual FX liberalization by easing its temporary anti-crisis restrictions that have now become irrelevant.

First, the NBU expands possibilities for businesses to repatriate dividend in foreign currency abroad. Now, Ukrainian companies are able to perform dividend payments to foreign investors accrued for the period until 2013 inclusive in addition to payment of dividends accrued for 2014-2016, as was the case before. A monthly limit on such transactions will be USD 2 million per legal entity (an issuer, a custodian authority or a foreign investor). In the same way as before, the repatriation of dividend accrued for 2014-2016 will be carried out within a monthly limit of USD 5 million per legal entity.

Second, resident borrowers undergoing liquidation will be able to make early repayment of external borrowings raised from a nonresident lender (under a loan agreement subject to the procedure (sequence) of satisfying creditors’ claims determined by the legislation of Ukraine). The relevant provision will be added to the list of exemptions from a ban on early repayment of external borrowings by a resident in favor of a nonresident.

According to NBU estimates, these measures will not create a spike in demand for foreign currency (currently FX purchases for the purpose of dividend repatriation accrued for 2014-2016 are less than 4% of demand for FX in the interbank market). Thus, the interbank market is not expected to see additional pressure.

Respective changes were approved by NBU Board Resolution No. 112 dated 14 November 2017 On Amendments to NBU Board Resolution No. 410 dated 13 December 2016, which becomes effective on 15 November 2017.