Residents of Ukraine will be able to repay debts to non-residents for new loans

Resolution of the Board of the National Bank of Ukraine No. 77 dated June 20, 2023, introduced amendments to Resolution of the Board of the National Bank of Ukraine No. 18 dated February 24, 2022, "On the Operation of the Banking System during the Introduction of Martial Law."

According to the new subparagraph 43 of paragraph 14 of the mentioned resolution, authorized institutions are prohibited from conducting cross-border transfer of currency values from Ukraine or transferring funds to correspondent accounts of non-resident banks in hryvnia or foreign currency, except for certain cases:

1. Transfer of funds for the purpose of fulfilling debt obligations of a resident-borrower to a non-resident under a loan agreement or loan agreement where the provision or receipt of the total loan or loan amount (including revolving financial assistance) takes place after June 20, 2023, and provided that:

• The loan or loan funds are received from abroad into Ukraine for crediting to the current account of the resident-borrower in a bank in Ukraine after June 20, 2023;
• For loans or loans obtained by the resident-borrower for a period not exceeding three years, the transfer of funds for the fulfilment of obligations of the borrower under the respective loan agreement or loan agreement with a non-resident is made only from the borrower's own funds in foreign currency;
• For loans or loans obtained by the resident-borrower for a period exceeding three years, within the first three years from the date of initial receipt of the principal amount of the loan or loan, the transfer of funds for the repayment of the principal amount of the loan or loan is made only from the borrower's own funds in foreign currency.
• When making the transfer of funds, the requirements of paragraphs 19-5 to 19-7 of this resolution are observed.