·         The restriction on early repayments of non-resident loans and borrowings in foreign currency for Ukrainian companies has been loosened.

From now on resident borrowers can repay loans in FCY, received from non-residents before maturity day, in case in its performance (in form of lending, insurance, guarantee or surety) foreign entity takes part (in full or partially). The shareholder of such entity should be either foreign government or a foreign bank, with foreign government  being its shareholder. 

·         The list of business operations, proceedings from which are not subject to obligatory FCY sale requirement, has been expanded.

Funds, received as loan tranche from non-residents are not subject to obligatory FCY sale requirement, in case in its performance (in form of lending, insurance, guarantee, surety) foreign entity takes part (in full or partially). The shareholder of such entity should be either foreign government or a foreign bank, with foreign government being its shareholder.

This exception applies only to cases, when the mentioned foreign government was rated no lower than A, as confirmed in a bulletin of one of the world’s leading rating agencies (Fitch Ratings, Standard&Poor’s, Moody’s). 

·         The procedure of FCY cross-border transfers according to legal proceedings  has been simplified.

Resident borrowers, who have NBU individual license on FCY transfers abroad, can transfer funds without limits, imposed on amount of transfer, for execution of court decisions, decisions of the international commercial courts of arbitration or for discharging claims of parties under court decisions, decisions of the court of arbitration; for collecting court, enforcement or administrative fees, as well as legal and enforcement proceedings’ fees charged from the borrower according to foreign laws.

The foreign government should have official rating no lower than A, as confirmed in a bulletin of one of the world’s leading rating agencies (Fitch Ratings, Standard&Poor’s, Moody’s).

(Source: Central Bank of Ukraine)