The NBU cancelled the limit for funding representative offices of Ukrainian companies abroad

The Forum for Leading International Financial Institutions welcomes the adoption of Resolution of the Board of the National Bank of Ukraine (NBU) #86 dated June 27, 2019 amending the regulation on foreign currency transactions that comes into force on July 2, 2019. The Regulation #86 canceled several administrative restrictions being burdensome for Ukrainian companies, foreign investors and diplomatic missions.  

In particular, Regulation #86 introduced the following changes:

● the limit for funding representative offices and other separate subdivisions of Ukrainian companies abroad has been canceled. Beforehand, the transfer of funds to foreign affiliates was limited for legal entities up to 2 million euros per year,

● reinvestment of foreign investors' income from operations with Ukrainian securities is simplified. Non-residents are allowed to transfer funds received from securities registered with a foreign depositary bank from the correspondent account of this institution to their own account in Ukraine,

● risk-oriented supervision of banks was improved, in the part of inspections of foreign counterparty banks, to which transfers are made by Ukrainian companies. From now on, banks themselves, on the basis of information from public sources, will determine the degree of risk of foreign counterparty banks for a currency transaction. Previously, they used the list provided by the National Bank on the basis of information from the State Financial Monitoring Service of Ukraine.