National Bank of Ukraine eases foreign exchange restrictions for payment of foreign loans
The National Bank of
Ukraine (NBU) has eased currency restrictions by allowing the transfer of funds
abroad for the repayment of certain foreign loan categories, the central bank
reported on June 15.
"The NBU made the relevant decisions to ease FX restrictions in view of the stable situation on the FX market, the sufficiently high levels of international reserves, and the increased maturity of funds in the banking system," the message reads.
Regular repayments of the following foreign loans will be allowed:
· secured by a guarantee or surety of an international financial institution
· granted with the participation of a foreign export credit agency or a foreign state through an institution authorized by it or through a foreign legal entity whose shareholders include a foreign state or a foreign state bank.
Residents will be able to transfer funds according to the schedule of refunds and interest payments detailed in a credit agreement. This will help to offset unproductive capital outflows, protect international reserves and the RX market stability, the NBU reports.
The National Bank hopes these measures will facilitate credit inflow to the country and will significantly exceed the funds outflow for servicing of current debt.
The decision will improve the country's credit attractiveness and will help to expand the ability of rising international funding for the Ukrainian economic recovery, the central bank added.
Ukraine currency reserves rose by 4% in May to $37.3 billion. That is the highest quantity of foreign reserves Ukraine has held since August 2011.
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