National Bank of Ukraine toughens requirements for mandatory sale of foreign currency proceeds
The recent amendments to Ukrainian banking legislation stipulating additional requirements for the sale of proceeds by residents and non-residents in foreign currency have come into force.
Previous banking rules established a requirement for the mandatory sale of foreign currency proceeds in the amount of 50 per cent of the proceeds from the sale of goods under foreign trade contracts. Since 12 October 2013, the National Bank of Ukraine has obliged legal entities and individual entrepreneurs to sell 50 per cent of foreign currency proceeds from abroad at the foreign currency exchange market regardless of the source of such proceeds.
Today, not only funds received as proceeds from cross-border transactions, but foreign capital investments into Ukraine, foreign currency loan moneys may pose a risk to fall under the category of ‘foreign currency proceeds received from abroad’ from the standpoint of the National Bank of Ukraine. As a result, Ukrainian companies undertaking return of investments or repayment under loan agreements might be forced to convert Ukrainian hryvnyas, derived as a result of mandatory sale, into foreign currency, running into additional expenses caused by foreign exchange-rate risks…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian government has launched ‘Accelerating Commercialisation’, an initiative aimed at accelerating the commercialisation of intellectual property relating to new products, processes and services.
Hong Kong Competition Commission publishes draft guidelines — a key step toward bringing the competition ordinance into full force
The Hong Kong Competition Commission has published a set of draft guidelines on 9 October 2014 for public consultation.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.