Ukrainian National Bank allows cross-border repayment of credits backed by ECAs, DFIs or IFIs
In a major milestone in the liberalisation of the currency control regime in Ukraine, on 16 June 2023 the National Bank of Ukraine eased its restrictions, granting resident borrowers the ability to repay certain external loans and credits.
Commencing from this date, Ukrainian residents can repay loans and credits, which:
- are backed by guarantees or warranties from international financial organisations; or
- are granted with the participation of a foreign export credit agency or foreign state through its authorised institution or through a foreign legal entity, among the shareholders of which there is a foreign state or foreign state bank.
The repayment of such loans or credits must be done under the terms specified in the existing agreements. Amendments to these agreements to shorten the repayment term are not allowed.
It is believed that by enabling the transfer of funds abroad to repay specific categories of external credits and loans, the conditions for attracting new funds to Ukraine will be enhanced. In additional, these changes should facilitate the expansion of opportunities for international partners to channel financing towards the recovery of the Ukrainian economy.
For further information on these changes and Ukraine’s currency control regime, contact your usual CMS advisor or local CMS experts: Ihor Olekhov, Kateryna Chechulina.
