Policy Win: The National Bank of Ukraine Cancelled the Limit on Repatriation of Proceeds from Selling Securities & Equity Rights by Foreign Investors
The American Chamber of Commerce in Ukraine welcomes steps of the National Bank of Ukraine (NBU) aimed at currency market liberalization and foreign currency control relaxation, namely recent adoption of NBU Resolution #113 amending regulation on certain FX transactions, dated September 9, 2019. By adopting this Resolution, the NBU cancelled a monthly limit of EUR 5 million set on the repatriation of funds received from selling securities and equity rights as well as the funds received from a reduction of authorized capital of a legal entity or a foreign investor’s exit from an economic partnership.
In addition, new items have been added to the list of transactions that may be executed through the accounts of nonresidents. In particular, it is now allowed to credit to the current accounts of nonresident individuals the hryvnia funds received as dividends, interest income on securities, or other income from property items that is not related to their alienation, sale, or liquidation or reduction of authorized capital. Furthermore, to avoid misunderstanding, the NBU clarifies that the existing e-limit of EUR 2 million per year set on the abroad investments of resident legal entities also applies to the purchases of securities of foreign issuers and Ukrainian Eurobonds.
Starting September 10, 2019 it will give nonresidents more flexibility in managing their own funds both in foreign currencies and in hryvnia. It is expected that streamlined procedure of repatriation of foreign investment will also facilitate the flow of investment into Ukraine. At the same time, a number of steps remain to be taken on the way to full liberalization of the currency market and the Chamber will take every single effort for achieving these steps and ensuring their effective implementation.