NBU allowed to withdraw abroad dividends for all years, but set a limit of sums
From now on, foreign investors have right to transfer abroad from Ukraine dividends for all previous years, until 2017, inclusive. However, the monthly amount is limited to 7 million U.S. dollars.
The decision, which will come into force on 3 March, attended the national Bank.
“The national Bank gave foreign investors the opportunity to repatriate dividends for all previous years. Given the favorable situation on the currency market, the national Bank continued the gradual easing of administrative constraints, the weakening of which will contribute to improving the business and investment climate of Ukraine and at the same time will not lead to the violation of price and financial stability. According to a survey of Bank customers regarding their plans for the repatriation of dividends for last year, the national Bank estimated potential demand for foreign currency in the interbank market and decided to establish a single limit on the payment of dividends in foreign currency accrued during the previous year, ” explained the regulator.
Still investors could be paid abroad in foreign currency dividends accrued in the period up to 2016 inclusive. The amounts of such payments were limited to the set limits: for dividends for the 2014-2016 year – up to $ 5 million per month, for dividends, for the period until 2013 inclusively – no more than $ 2 million per month.
NBU says “weight loss” of foreign exchange reserves
Setting a limit to the NBU explained that want “to ensure a more even demand for currency on the part of companies that intend to pay dividends to foreign investors, and to minimize its impact on the state of the interbank foreign exchange market, and thus, the price and financial stability as a whole.”
At the same time, the regulator expanded for Ukrainian business opportunities ahead of time to repay external loans in foreign currency. Now the resident-borrowers can exercise early repayment of such loans within the monthly limit of 2 million dollars (for one of the resident borrower under the loan agreements/loan agreements to be serviced within one of the authorized Bank).
In addition, the national Bank extended the list of operations of the business, the income which is not subject to the requirement for mandatory sale of foreign currency. From now on this requirement, which from April 2017 is 50%, would apply to funds that a resident company was attracted in the form of foreign loans or loans to refinance his debt to non-residents by authorized banks or other credits or loans. This will make it easier for Ukrainian companies, primarily exporters, the refinancing of existing obligations and the further attraction of funds on foreign markets.
We will remind, the national Bank of Ukraine did not see improvement in the economy and to curb inflation once again raised the discount rate from 16% to 17% per annum.
- National Bank
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The national Bank of Ukraine
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