Borrowers Can Choose More Favorable Exchange Rate

The clients-borrowers can now choose really beneficial sell rates of the foreign currency from authorized banks in order to fulfill their obligations to the authorized creditor bank under a loan agreement.

Corresponding changes envisaged by the Resolution of the Board of the National Bank of Ukraine of May 15, 2018 № 53 “On Amendments to Certain Normative Legal Acts of the National Bank of Ukraine”, came into force today, May 17, Law and Business reported.

Until now, the resident-borrower had the right to purchase a foreign currency only through an authorized bank servicing the loan agreement. Now he will be able to purchase it through other banks of his choice, where he should have a current account in foreign currency.

Also this document changed the order of return of investments and revenue from their implementation. Non-residents are given the opportunity to buy and repatriate the currency in case when foreign investments were made through the capitalization of dividends, which means, by assigning dividends accrued by the issuing company to a foreign investor, directly to increase the share capital of this company.

Moreover, there was abolished the requirement that obliged banks to carry out mutual settlements on transactions on the purchase and sale of foreign currency and banking metals for hryvnia only after confirming the agreements through the System for Confirming Agreements on the Interbank Currency Market of Ukraine. From now on, such settlements between banks can be carried out both before and after confirmation of agreements on the purchase and sale of foreign currencies and banking metals through this system.

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