Ukrainian Business Will be Able to Increase Capital
OREANDA-NEWS. The National Bank of Ukraine has expanded the opportunities for restructuring the Ukrainian companies’ currency debt to further increase their authorized capital. To this end, the appropriate changes have been made to NBU Board Resolution in force No 342 On Resolving the Situation in the Money and Foreign Exchange Markets of Ukraine dated June 07, 2016.
Currently, residents can repay foreign currency credits and loans under agreements with non-residents on or after the term provided in the agreements. Early repayment is possible in the following cases only:
- early refunds are allocated for additional capitalization of an authorized borrowing bank;
- restructuring of obligations by borrowing with a later deadline is done;
- an international financial institution acts as a creditor;
- a portion of such credit or loan is provided by a foreign export credit agency.
The NBU Board has decided to extend the list of exceptions. Namely, it allows reducing the foreign currency credit or loan repayment period for a resident client, other than a bank, to a non-resident if a debt restructuring is done, where claims on the principal of a credit or loan are set off as an additional non-resident’s contribution to the resident’s authorized capital. This will facilitate reducing the external private debt of Ukraine with no foreign currency outflow from Ukraine and with no additional pressure on the foreign exchange market of the country.
In the meantime, the National Bank has introduced a number of other changes to NBU Board Resolution No. 342.
First, the procedure for currency purchase and transfer to pay for treatment of individuals abroad is simplified. The information about these transactions will be entered into the register without submitting relevant documents to the NBU. At that, an authorized bank will be able to buy foreign currency for a client for these purposes the next day after remittance of funds in UAH for the purchase, and in case there are own funds in foreign currency available - on the day a client submits his payment order to the bank.
Second, control over balances of the resident clients’ accounts (except for individuals) when buying foreign currency is improved. Before, it was exercised by the National Bank on the date of getting information about this transaction in the relevant register. Henceforth, it will be assigned to the authorized banks, which will exercise this control on the date when currency is purchased.