NBU allows residents international transfers for new loans
This applies to the servicing and repayment of new foreign loans, the funds for which will come from abroad after June 20, 2023, to borrowers' accounts in Ukrainian banks
From June 21, 2023, the NBU has allowed residents to make international transfers for the servicing and repayment of new foreign loans, subject to a series of conditions.
This information can be found on the NBU website.
In particular, residents can now perform the following operations under these conditions:
- Sending money abroad to pay interest (including commissions, fees and other payments for loan or credit servicing) can be carried out provided that the maximum interest rate does not exceed 12% per annum.
- Transfer of money for the fulfillment of obligations for loans or credits, obtained for a term of no more than three years, can be executed only from own funds in foreign currency.
- For loans or credits with a term of more than three years, the transfer of money for their repayment within the first three years is made only from own funds in foreign currency. Meanwhile, the borrower can purchase foreign currency for the payment of interest, commissions, fees, and penalties, and starting from the fourth year – also for the repayment of the loan or credit.
- The transfer of funds for early repayment of funds for loans and credits is not permitted.
It is noted that the conditions set by the NBU will contribute to reducing the risks of unproductive capital outflow, limiting the impact on international reserves and the foreign exchange market.
Background. Earlier Mind reported that the NBU allowed residents to make transfers abroad for the repayment of certain foreign loans and credits.
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