Banking & financial services committee meeting

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Agenda:

On November 16, the Chamber Banking & Financial Services Committee took place with the agenda focused on the following issues: 

1.    Chamber-Center for Economic Strategy Draft Position Paper on cancelation of the sanctions for violation of the 90-days rule for receipt of export/foreign exchange revenues. 

Special guests:

  • Mr. Denys Gutenko, Director of Department for Regulation of Foreign Economic Activities, Ministry of Economic Development and Trade of Ukraine;
  • Ms. Olena Omelchenko, Lawyer, Ilyashev & Partners Law Firm, Head of the Chamber WG on External Trade. 

At the beginning of the meeting Mr. Gutenko emphasized the intentions of the Ministry of Economic Development and Trade of Ukraine (MEDT) to modify the sanctions for violation of the 90-days rule for receipt of export/foreign exchange revenues. There were two possible approaches discussed: 

1) Solve the problem of sanctions in general by canceling them:

  • sanctions for 90 days overdue (on submission by SFS);
  • sanctions for customs offenses (on submission by SFS);
  • sanctions for other violations (on submission of SBU (quite abusive). 

2) Solve the problem of sanctions for minor infractions setting the following criteria:

  • set the margin for violation amounts; 
  • diversify contracts and violations by the counterparty country (offshore/non-offshore, OECD, EU/US/non-EU/non-US) or by company’s credit rating;
  • more flexible interpretation regarding the non-application of sanctions or withdrawal.

Actions: In order to provide the MEDT with the feasible solutions, we would like to encourage Chamber Members to share their expertise on the best international practices and ideas for the mechanism to prevent the violation of the 90-days rule for receipt of export/foreign exchange revenues in terms of cancelation/partial cancelation of the MEDT sanctions. 

2.    Chamber Position Paper to SFS regarding the mechanism of the bank guarantee for the automatic VAT refund, by Mr. Vladislav Berezhniy, Director of Corporate Banking and Structured Finance Department, Credit Agricole. 

Action: The position will be incorporated with the anti-monopoly explanations and submitted to the responsible authorities. 

3.    Draft Law #2784 “On Bonds Secured by Separate Assets”: Overview of the international legislation and how the securitization can be used to resolve the issue of NPL of the banking system, by Mr. Stanislav Dubko, General Director of the "Ukrainian Credit Rating Agency” (UCRA). 

Please click here to view the Presentations (in English and Ukrainian) and Analytical Reference (in Ukrainian). 

Action: We encourage all interested Chamber Members to submit their feedback regarding the support/not support of Draft Law #2784. 

4.   Overview of the PayPal situation: business and NBU contradictions in understanding of PayPal, by Mr. Ihor Olekhov, Partner, Baker & McKenzie, Chamber Banking & Financial Services Committee Co-Chair. 

Action: To continue the communications with NBU on the online payment systems functioning in Ukraine the Committee agreed to finalize the Draft Position Paper and to update it with the proposals to the new NBU Comparative Table to the Draft Law "On Amendments to the Law of Ukraine "On Payment Systems and Money Transfers in Ukraine" regarding Creation of Conditions for Functioning of the International Internet Payments Systems in Ukraine.” 

Also, in order to provide the National Bank of Ukraine with the feasible solutions, we would like to encourage Chamber Members to share their expertise on the best international practices and ideas for PayPal and other international payment systems legal, FX and taxation approach.