Letter of the National Bank № 163 of 14 May 2013

Effect of Resolution of the National Bank of Ukraine (NBU) of 14 May 2013 № 163 regarding the mandatory sale of foreign currency does not apply to foreign currency revenues under international agreements signed by Ukraine and loans obtained under the state guarantee. This is stated in explanation of the National Bank of 5 November 2013, received by the Independent Association of Banks of Ukraine (IABU).

«Requirements of Resolution № 163 on mandatory sale of receipts in foreign currency for legal entities (including authorized banks) and individual entrepreneurs do not apply to the revenues of credits (loans), drawn under state guarantees, revenues of credit (loans) from international financial organizations where Ukraine has membership, and international financial institutions, in respect of which under the signed framework agreements Ukraine committed to provide legal treatment accorded to other international financial institutions and international technical assistance if an international treaty to attract this assistance provides for rules other than those set out in the relevant act of legislation of Ukraine», the regulator explains.

In the explanation National Bank refers to articles 15 and 19 of the Law of Ukraine «On International Treaties of Ukraine» and explains its position by Ukraine’s need to ensure the use of funds of international financial institutions solely for the purposes provided for in international treaties.

The regulator specifies that funds in foreign currency, which in accordance with international treaties are received from international financial institutions to the accounts of the Ministry of Finance of Ukraine, the State Treasury Service of Ukraine, the main spending units, lower level managers, in particular, central authorities and entrepreneurs (executors / beneficiaries / recipients) are the state's external borrowings. Effect of Resolution № 163 does not cover external borrowings.