The NBU allowed payment of dividends for 2017 and introduced other measures of FX liberalization
Tax & Legal Alert
9 March 2018
The National Bank of Ukraine moves ahead with gradual easing of administrative restrictions on the currency market.
The respective measures to ease restrictions were approved by the Resolution of the National Bank of Ukraine Board “On Amending Certain NBU Regulatory Acts” No. 19 dd 1 March 2018. The amendments took the effect from 3 March 2017.
The stated amendments provide for the following:
- firstly, extend possibility for foreign investors to repatriate dividends accrued for 2017 under the corporate rights and shares.
Previously, investors were allowed to pay abroad the dividends in foreign currency accrued for 2016 inclusively. Herewith, the amounts of such payments were restricted with the certain limits:
- as to dividends for 2014-2016 – up to USD 5 mln per month;
- as to dividends for the period before 2013 inclusively – not more than USD 2 mln per month.
As from now, Ukrainian companies may pay dividends to foreign investors in foreign currency amounting to USD 7 mln per month regardless of the period for dividends accrual.
- secondly, provide early repayment under the external credits and loans in foreign currency.
As from now, resident borrowers may early repay such credits and loans within monthly limit amounting to USD 2 mln (for one resident borrower under credit/loan agreements serviced in one authorized bank).
- thirdly, extend the list of business operations excluded from mandatory sale proceeds in foreign currency.
As from now, the requirement as to mandatory sale of currency in the amount of 50% shall not be applied to the funds raised by the resident company in form of external credits or loans for refunding its current debt before non-residents or authorized banks under the other credits or loans.
The referred amendments on payments of dividends and early repayment of external credits and loans in foreign currency shall be effective until the adoption of the separate resolution by the National Bank of Ukraine; amendments on absence of the requirement on mandatory sale of currency for refunding existing debt shall be effective until 13 June 2018 (inclusively).