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Business voiced current needs for easing currency restrictions

10/ 10/ 2024
  On October 8, representatives of the European Business Association met with the leadership of the National Bank of Ukraine to discuss issues related to currency regulation. The Governor of the NBU, Andriy Pyshnyi, provided an overview of the macroeconomic situation, thanked businesses for their dialogue, and shared information about the regulators efforts toward currency liberalization. These efforts are part of the Strategy for Easing Currency Restrictions, transitioning to a more flexible exchange rate, and returning to inflation targeting, adopted in July 2023. The business community expressed gratitude to the NBU representatives for the open dialogue and the easing of currency restrictions introduced in 2024. Additionally, businesses presented their current needs for further currency liberalization based on the results of a special survey conducted by the EBA. In particular, there is a need to expand the existing quarterly limit of 1 million euros for the repayment of interest payments on foreign loans, considering the volume of business financial obligations. Furthermore, it is important to review the requirement to make interest payments on the latest date specified in the contract. It is also crucial to allow the payment of outstanding import debts accumulated before February 23, 2022. The EBA sent the full package of proposals to the regulator for consideration on October 4. In response, Andriy Pyshnyi noted that the pace of currency liberalization is directly dependent on creating the necessary conditions and the impact of past and future measures on the currency market. He added that the exchange rate policy aims to balance supporting business activity with maintaining macro-financial stability. This is our shared resource, which is important to preserve, he said. The business community appreciates the NBU for its regular dialogue and responsiveness to the need for currency liberalization and hopes that the priority needs for further easing of currency restrictions will be taken into account.
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On October 8, representatives of the European Business Association met with the leadership of the National Bank of Ukraine to discuss issues related to currency regulation.

The Governor of the NBU, Andriy Pyshnyi, provided an overview of the macroeconomic situation, thanked businesses for their dialogue, and shared information about the regulator’s efforts toward currency liberalization. These efforts are part of the Strategy for Easing Currency Restrictions, transitioning to a more flexible exchange rate, and returning to inflation targeting, adopted in July 2023.

The business community expressed gratitude to the NBU representatives for the open dialogue and the easing of currency restrictions introduced in 2024. Additionally, businesses presented their current needs for further currency liberalization based on the results of a special survey conducted by the EBA. In particular, there is a need to expand the existing quarterly limit of 1 million euros for the repayment of interest payments on foreign loans, considering the volume of business financial obligations. Furthermore, it is important to review the requirement to make interest payments on the latest date specified in the contract. It is also crucial to allow the payment of outstanding import debts accumulated before February 23, 2022. The EBA sent the full package of proposals to the regulator for consideration on October 4.

In response, Andriy Pyshnyi noted that the pace of currency liberalization is directly dependent on creating the necessary conditions and the impact of past and future measures on the currency market. He added that the exchange rate policy aims to balance supporting business activity with maintaining macro-financial stability. “This is our shared resource, which is important to preserve,” he said.

The business community appreciates the NBU for its regular dialogue and responsiveness to the need for currency liberalization and hopes that the priority needs for further easing of currency restrictions will be taken into account.

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