The national Bank of Ukraine has amended several rules of the foreign exchange market, allowing, among other things, to transfer external debt to the capital of Ukrainian companies and simplifying purchase of foreign currency to pay for the treatment of individuals abroad.
As reported on the NBU website on Thursday 25 August, the amendments made to the decree of 7 June 2016 No. 342.
«The Board of the national Bank decided to expand the list of exceptions. Namely, allowed to reduce terms of returning of the client-resident who is not a Bank, credit or loan in foreign currency in favor of non-residents in the case of debt restructuring, where the requirements for the principal amount of the loan shall be credited as additional contribution of non-residents in the authorized capital of a resident», — explained the essence of the changes in the NBU.
In NBU believe that this decision will contribute to the reduction of external private debt of Ukraine without the outflow of foreign currency outside Ukraine without creating additional pressure on the foreign exchange market.
«The Ukrainian business will be able to raise capital due to the early repayment of foreign currency liabilities to non-residents», — underlined in the message.
In NBU reminded that to date, residents can repay the loans in foreign currency under contracts with non-residents not informed of the time limits prescribed by the treaties. Exceptions to this rule are cases when the prepaid funds are allocated for the recapitalization of the Bank or the borrower being restructured obligations by borrowing with the later period, when the lender is an international financial organization or foreign export credit Agency.
In addition, the amendments provide that the information about the transactions for the purchase and transfer currency to pay for the treatment of individuals abroad will be included in the register without the submission to the NBU of the relevant documents.
Thus, according to the report, the Bank will be able to buy for the customer foreign currency for these purposes on the day following the date of transfer of funds in UAH for the purchase, and in the presence of own funds in foreign currency on the date of submission by the customer to the Bank payment order.
According to the national Bank, also improved control of the rests on accounts of clients-residents (excluding natural persons) when buying foreign currency.
«Until now it was carried out by the national Bank on the date of receipt of the information about this operation in the appropriate register. From now on it will be imposed on banks, which will carry out this control on the date of purchase of foreign currency», — stated in the message.
The NBU has amended the regulations on the procedure of obtaining by residents of credits, loans in foreign currency from non-residents and granting by residents of loans in foreign currency to non-residents (decree of 17 June 2004, No. 270).
«The Board has increased the responsibility of banks for review and analysis of documents (information) at the time of registration and maintenance of credit agreements and loan contracts, stipulating fulfillment of obligations in foreign currency to non-residents, including by identifying indicators of risk of financial operations», — underlined in the message.
The report also notes that for the same purpose, expanded the list of grounds for refusal of registration and cancellation of registration of the credit agreement and the loan agreement by the NBU.
According to the report, changes are fixed by the NBU on 23 August 2016 No. 375, which come into force on 1 September 2016. The changes in decree No. 342 will be in effect until the termination of this document: September 14, 2016.
We will remind, earlier in July, the national Bank tightened the conditions for removal of capital from Ukraine.
The national Bank allowed to credit foreign debt to the capital of Ukrainian companies and simplified the purchase of foreign currency for the treatment 25.08.2016