From September 6, the decision of the Board of the National Bank of Ukraine comes into force, which updates currency restrictions in order to increase the supply of cash currency, settle external debt by business and protect international reserves.

The changes concern the following issues.

Cash segment of the foreign exchange market.

The volume of cash currency that the bank can offer to the population will include the entire volume of non-cash currency purchased by it from April 13, 2022 from citizens, and not half of it.

According to the National Bank, the expansion of the supply of cash currency will help stabilize the situation in the cash segment of the foreign exchange market.

Restructuring of external debts of bank clients.

The temporary norms introduced by the National Bank do not make it possible to transfer foreign currency abroad for the repayment and servicing of debt obligations by Ukrainian enterprises to non-residents. This norm is necessary to preserve the international reserves of Ukraine, since the implementation of the corresponding payments in full would require a significant amount of a currency resource that was scarce in war conditions..

From now on, banks should recommend that clients with existing debt to non-residents apply to creditors with a proposal to restructure it on terms no worse than the restructuring of the external debt of the Government of Ukraine.

The NBU allowed to transfer foreign currency to pay interest payments on the relevant loans, while meeting the following conditions:.

the interest payment date falls between 24 February and 10 August 2022 (inclusive);

as of February 24, 2022, the borrower had no overdue debt under the loan agreement;

the total amount of funds that is allowed to be transferred within one loan agreement during a calendar month should not exceed one fifth of the amount of interest that was payable in the period from February 24 to August 10, 2022 (inclusive);

funds that are used to purchase foreign currency and transfer currency values \u200b\u200bin order to pay the corresponding interest payments should not be involved in loans from residents;

the borrower has no tax debts;

the borrower continued to carry out business activities after February 23, 2022, in particular, paid salaries to employees and other mandatory payments.

The National Bank expects that the relevant decision will provide an opportunity to improve the business environment, which is important for the Ukrainian economy, and will have a controlled impact on international reserves.

Purchase of currency by a business for settlements in foreign currency.

To make settlements in foreign currency, the enterprise must first use the foreign currency it has, and then, if necessary, buy it on the foreign exchange market of Ukraine.

As of September 2, 2022, the volume of funds in foreign currency accounts of legal entities (excluding budget funds and extra-budgetary funds) in the banking system is $8.7 billion. USA. Taking this into account, the relevant norm will reduce the demand for foreign currency and make it possible to preserve Ukraine's international reserves, which are important for meeting defense needs, stable operation of the economy and financial system of the country..

Currency supervision of banks.

Banks do not have the right to terminate currency supervision over compliance by Ukrainian businesses with the deadlines for settlements on export or import operations on the basis of documents on the termination of obligations by offsetting. This will help increase the transparency of cash flows for export-import operations.