The National Bank of Ukraine (the “
NBU”) has made
further steps to liberalize existing currency control rules and
lift some of the restrictions in place:
1. Recourse payments under
cross-border guarantees. Apart from lifting a
USD 50,000 monthly cap set for payments under individual
licenses by Ukrainian banks, the NBU has clarified some other
individual licensing regulations. As a result, starting from 15
December 2017, Ukrainian borrowers will no longer require an
individual license of the NBU to make payments abroad to reimburse
any foreign guarantor upon discharging the borrower’s
obligations under a loan agreement with a Ukrainian bank by such
guarantor.
This step is very logical as a foreign entity
making payments to Ukraine should be able to receive money back
without any restrictions. At the same time, such novelty should
expand the toolkit available to the parties in debt restructurings
and give a boost to workouts, as well as facilitate local
