Business welcomes abolition of credit restrictions on currency purchases
From August 8, 2019, the National Bank of Ukraine will abolish restrictions that have forbidden businesses to buy foreign currency for loans using hryvnia. This decision was made by NBU Resolution N 104.
The European Business Association welcomes another liberalization of the currency, as it means that businesses will be allowed to buy foreign currency (including online) at their own expense, without limitation of the amount.
This solution will help businesses manage their liquidity more efficiently and buy the necessary currency to fulfill their obligations at a convenient time. Previously, it was impossible for a business to lend to buy currency freely, despite the fact that the responsibility for making payments and, accordingly, issuing credit, remains with banks.
At the same time, the resolution improves the currency supervision of business. From now on, banks will carry out currency supervision within 5 days of receiving information about the replacement of the servicing bank in the customs declaration. This will avoid double-checking client operations. Previously, there was no such a practice which created a burdensome mechanism for controlling the conduct of business operations.
We look forward to further loosening of currency restrictions and ensuring free movement of capital in the country.