NBU Allowed Purchasing Foreign Currency from Foreign Investors to Increase Share Capital as Advocated by the Chamber
The National Bank of Ukraine considered proposals of the American Chamber of Commerce in Ukraine regarding the closure of the real open foreign exchange position of the banks and, as a result, allowed purchasing foreign currency from foreign investors to increase share capital. We believe that these measures will minimize the risk of further depreciation of capital due to the devaluation of the UAH currency and inflation in Ukraine as well as encourage foreign parent companies to invest in capital.
Earlier the Chamber Banking & Financial Services Committee jointly with the Forum for Leading International Financial Institutions (FLIFI) addressed the NBU on this issue and the position was further successfully communicated by the Chamber Leadership to the NBU and, in particular, NBU Governor Valeria Gonatreva.
As advocated by the Chamber, respective changes were adopted by NBU Resolution #248 “On Amendments to Some Legal Acts of the National Bank of Ukraine” in which the NBU has allowed the banks the partial / full redemption of own foreign exchange position which comes as foreign investment from the parent company, aimed at increasing the bank's capital in the amount equivalent to the size of the real short open foreign exchange position.