The NBU introduces the largest package of currency restrictions since the beginning of the full-scale war
Kyiv • UNN
The NBU introduced the largest package of currency restrictions since the beginning of the full-scale war, allowing businesses to enter new markets, repatriate dividends, transfer funds abroad under leasing/rental agreements, repay foreign loans and interest on them, and ease restrictions on representative offices, which aims to improve the business environment, support economic recovery and facilitate new investments.
The NBU Board has adopted a number of changes that will improve the business environment in Ukraine and the entry of Ukrainian businesses into new markets. They will also support economic recovery and facilitate the inflow of new investments into the country. This was reported by the regulator's press service, according to UNN.
Details
The changes will affect several areas:
- all currency restrictions on imports of works and services are lifted;
- Enables businesses to repatriate "new" dividends;
- it is possible to transfer funds abroad under leasing/rental agreements;
- restrictions on the repayment of "new" external loans are being eased;
- the opportunity to repay interest on "old" external loans;
restrictions on the transfer of foreign currency from representative offices to their parent companies are eased.
Most of them will come into force on May 4, 2024. Only the ability to repatriate "new" dividends will be effective from May 13, 2024.
It is emphasized that the NBU is taking this step given that the necessary prerequisites have been formed. Given a thorough analysis of each individual step, the changes should not create additional risks to macrofinancial stability and the stability of the foreign exchange market.
They have already been taken into account in the updated macroeconomic forecast, which assumes that international reserves will remain close to the current level this year and next (USD 43-44 billion).
