One of the most pleasant changes for domestic exporters is the ability to dispose of a greater amount of foreign exchange earnings. Due to Resolution of the Board of the National Bank “On the regulation of the situation in the monetary and foreign exchange markets of Ukraine” of 07.06.2016, № 342 (hereinafter − the Resolution № 342) it is possible to sell in the interbank market, including the NBU, only 65% of foreign exchange earnings (before it was 75%). What other changes should be remembered − in the following.
Repatriation of dividends
Permission of the National Bank of Ukraine (hereinafter − the NBU) for the payment of foreign currency dividends is valid from 13.06.2016 and in the case of simultaneous compliance with a number of conditions provided by sub-para.18 of para.6 of the Resolution № 342.
Returning abroad of such dividends is possible under corporate rights/shares only for 2014 and 2015. The issuer of corporate rights/shares for which they are paid, or depository institution that provide services in a securities account to a foreign investor or directly a foreign investor should buy or transfer foreign currency for repatriation of dividends.
Of course, there are value limits for the purchase of foreign currency for the purpose of return of dividends abroad.
Thus, during a calendar month a person, who has the right to purchase foreign currency for repatriation of dividends, is entitled to buy it within the total amount not exceeding the greater of the two following limit values:
- USD 1 million or its equivalent in another currency at the official NBU rate on the transaction date;
- 10% of the total dividend intended to return abroad, but no more than USD 5 million or the relevant equivalent of the amount in other foreign currencies.
To buy/transfer foreign currency for repatriation of dividends is possible only through a single authorized bank, chosen by a person, who has such dividends. It is possible to change the authorized bank servicing the specified operations based on the appropriate written application of the client to the other bank, where the client is transferred for servicing. Such written application should contain the client’s permission to receive information about unfinished settlements on return of dividends from the bank, through which he/she made such calculations.
Payment limits of currency in cash are changed
Resolution № 342 contains the limits on the payment (receipt) of cash in foreign currency or precious metals from current and deposit accounts of customers through cash and cash offices and ATM machines. However, the limit is established at the rate of UAH 100 thousand per day per client in equivalent at the official NBU rate. This restriction applies to the payment (receipt) of cash both in Ukraine and abroad regardless of the number of client accounts in the same bank.
At the same time the National Bank did not extend the limit on cash payment in hryvnia (there were UAH 500 thousand per day). Therefore, there is no such a limit now.
There is an increase in limit of sale of foreign currency in cash or precious metals to one person in one operation (working) day – from equivalent of UAH 6 000 to UAH 12 000 within the same banking institution (sub-para. 3 of paragraph 6 of the Resolution № 342).
It should be reminded that period of validity of the Resolution № 342 is limited. The rules provided for by this document are valid until 14.09.2016.
