Given a gradual stabilization of the FX market, the National Bank of Ukraine moves ahead with easing of temporary FX restrictions introduced in 2014-2015.
Thus, NBU Board Resolution No. 410, dated 13 December 2016, On Resolving the Situation in the Monetary and Foreign Exchange Markets of Ukraine bans early repayment of FX loans borrowed from nonresidents. This document also granted exceptions from the rules.
The NBU Board has decided to extend exceptions from the rules governing early repayment of loans borrowed from nonresidents:
- Firstly, banks will be allowed to repay loans before maturity.
- Secondly, businesses will be able to repay loans before maturity if a shareholder of such borrower or nonresident creditor is an international financial organization.
- Thirdly, resident-borrowers will be able to repay loans before maturity if nonresident creditor is a bank.
These steps will make it easier to borrow funds abroad while causing no destabilization impact on the FX market,” said NBU Acting Governor Yakiv Smolii at the press briefing on monetary policy.
The amendments to this effect are provided for by NBU Board Resolution No. 61 of 10 July 2017 On Amendments to NBU Board Resolution No. 410 of 13 September 2016. The resolution shall come into effect from 11 July 2017.