Ukraine Removes Limits on Foreign Currency Cash Withdrawals

Editorial Team Banking, Business, Law

The National Bank of Ukraine (hereinafter – NBU) has canceled limits on withdrawals of cash in foreign currency from bank accounts in Ukraine. Such decision was reflected in the Regulation of NBU # 81 dated August 22, 2017 (effective starting from 24th of August, 2017) which amends Regulation of NBU # 410 dated December, 2016.

Before the current amendment, cash withdrawals from bank accounts in foreign currency were allowed only up to the equivalent of UAH 250,000 (roughly $9,800 based on current exchange rate) per day. Notably, cash withdrawal limits in the national currency Hryvna (UAH) were removed in September 2016.

Additionally, the following amendments were implemented as part of the Regulation #81:

  1. Banks are no longer allowed to return deposits in UAH equivalent if they were placed by bank’s client in a foreign currency.
  2. Canceled restriction for the banks to issue bearer certificate of deposit; canceled minimum term of registered certificates of deposit in foreign currency.
  3. Extended list of cases, when prepayment of loans from non-residents is allowed. While since 2014 preterm payment of loans by Ukrainian borrowers to non-residents of Ukraine is not allowed, the list of exceptions from this rule has been extended, namely: as a result of such amendments, a Ukrainian borrower may now prepay a loan granted by a foreign lender providing that among shareholders of such lender there is a foreign state or a foreign bank (providing a foreign state is a shareholder of such foreign bank). This exception applies only if the foreign state has an official rating not lower than “A”, confirmed by one of the leading rating companies (Fitch Ratings, Standard&Poor’s, Moody’s).

Hopefully, the above-mentioned changes will return people’s trust to Ukrainian banks and the bank system, improve the investment climate in Ukraine, and simplify real-estate transactions for foreign investors among other positive developments. Definitely, a step in the right direction.