National Bank allows repatriation of dividends for all previous years

The National Bank of Ukraine has enabled foreign investors to repatriate their dividends for all previous years. The regulator’s press service has informed about this, reports.
The decision to ease administrative regulations was made amid the favorable situation on the currency market. The measure is expected to facilitate the enhancement of the business and investment climate of Ukraine, while not infringing upon the financial and price stability within the country.

From now on, Ukrainian corporations will be able to pay their foreign dividends in foreign currency of up to $7 million monthly, regardless of the period when the dividends are accrued. The aim of such restriction is to ensure a more even currency demand from companies expecting to pay dividends to their overseas investors and to minimize its effect on the state of the inter-bank currency market.
Also, the regulator has expanded the opportunities for Ukrainian businesses to settle external debt nominated in foreign currency in advance. Now, resident borrowers will be able to settle such credits and loans within the monthly limit of $2 million (per one resident borrower on loan agreements serviced by a single authorized bank).

It is expected to enable corporations to manage their own debt obligations to non-residents more efficiently. The regulator has also expanded the list of business transactions, to which the mandatory sale requirement does not apply. From now on, the requirement, which has stood at 50% since April 2017, will not apply to the capital attracted by a resident company in the form of credits or loans for refinancing its existing debt to non-residents or authorized banks in other credits or loans.

The decision is supposed to make it easier for Ukrainian producers, especially exporters, to restructure their debt obligations and to attract capital on overseas markets. The aforementioned easing were confirmed by the resolution of the Board of the National Bank of Ukraine #19 “on amending certain legislative acts of the National Bank” from 1 March 2018. The law shall become effective on 3 March 2018.
In 2016, the National Bank of Ukraine allowed foreign investors to repatriate their dividends acquired in 2014-2015.
See also:
Leave a comment
  • Latest
  • Read
  • Commented
Calendar Content
«    Декабрь 2018    »