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Alleviation of some currency limitations

We would like to inform you that by their Order No. 361 dd. 28.07.20161 the National Bank of Ukraine (hereinafter – the NBU) has alleviated a set of currency limitations, which are active in Ukraine.

First, the NBU has extended the deadline for settlement of export and import transactions from 90 to 120 days.

We would like to remind you that this limitation has been in force in accordance with the Order of NBU No. 342 dd. June 7, 2016.2

Second, the NBU has simplified the conditions for payments under import agreements of clients, including advance payments.

Thus, settlement of accounts by letter of credit shall apply to payments of bigger amounts than 1 000 000,00 USD. Previously the banks had to apply settlement of accounts by letter of credit only in cases when the amount of a payment exceeds USD 500 000,00.

Third, it is now possible for the banks under certain circumstances to buy foreign currency when they repay internal governmental bonds with indexed value.

Relevant amendments have been made to p. 6 of the Order of NBU No. 342 dd. June 7, 2016.

Order No. 361 came into force on July 29, 2016 and shall be in force through September 14, 2016, while the provisions regarding settlement of account by letter of credit shall be indefinite.