Limit on Repatriation of Dividends Cancelled
In line with the currency liberalization and for improving the investment climate, the National Bank of Ukraine (NBU) has cancelled all limits on repatriation of dividends.
On 10 July, business with foreign capital is no longer subject to the limit of EUR 12 million per one legal entity on transferring dividends abroad or to nonresident accounts in Ukraine.
This currency easing will not have any adverse impact on the macroeconomic stability. In H1, businesses transferred abroad dividends of USD 1.27 billion, whereof 1.07 billion of the account of purchased currency. The value of purchased and transferred currency in 2019 is respectively by 14% and 20% lower, and at present account for only 4% of the total FX demand of bank customers.
Cancelling the limit on repatriation of dividends has become the third major currency easing over the last three weeks. Previously, the NBU cancelled the foreign currency surrender requirement and the limit on funding foreign representative offices of Ukrainian businesses.
In general, since the beginning of the year, the NBU has cancelled over 30 FX market restrictions. Currency liberalization will continue to respond to the positive developments of the macroeconomic situation.
The ultimate goal is the free flow of capital. The aforementioned amendments on the repatriation of dividends were approved by NBU Board Resolution №91 On Amendments to Some Regulatory Documents of the National Bank of Ukraine, dated 9 July 2019, that comes into effect on 10 July 2019.
(с) Press-center of the National Bank of Ukraine