10 Oct 2024 20:18
‘New’ dividends repatriated already by 320 companies in Ukraine – NBU governor
MOSCOW. Oct 10 (Interfax) – The enforcement of the May currency liberalization package has already allowed 320 businesses to repatriate dividends accrued after January 1, 2024, while 242 companies were able to pay interest on “old” foreign loans, Ukrainian media quoted National Bank of Ukraine (NBU) Governor Andrei Pyshny as saying on social media.
“The NBU’s currency policy is timely, but conservative enough to keep a delicate balance between increasing business activity and maintaining macro-financial stability. This is our common resource, which is now critical to preserve and nourish,” he said, without specifying the volume of the above transactions.
As reported, on May 3, the NBU announced the largest package of easing currency restrictions for businesses since the beginning of the crisis, which lifts all currency restrictions on imports of works and services, allows businesses to repatriate “new” dividends, and enables transferring funds abroad for leasing and rent.
The package also includes relaxation of restrictions on repayment of new foreign loans and interest on “old” foreign loans, as well as easing restrictions on the transfer of foreign currency from representative offices to their parent companies.
At the same time, businesses can repatriate only dividends accrued based on performance after January 1, 2024. To minimize macro-financial stability risks, the NBU has set a monthly limit one million euros for the dividend repatriation.
As for the repayment of “old” foreign loans, resident borrowers can make transfers in foreign currency to repay interest on loans, which, under the terms of the agreement, is due from February 24, 2022. Under a single loan agreement for interest payments overdue as of May 1, 2024, borrowers can transfer no more than one million euros equivalent per calendar quarter.