The National Bank of Ukraine (NBU) board adopted a resolution “On Amendments to the NBU Board Resolution No. 67 of May 14, 2019,” which expanded the list of export operations exempt from mandatory foreign currency settlement deadlines.

Under the adopted changes, currency restrictions on settlement terms do not apply to export operations if the receivable under the foreign economic contract has been transferred to the Export Credit Agency (ECA) based on an insurance agreement concluded in accordance with the Law of Ukraine “On Financial Mechanisms to Stimulate Export Activities,” and within the amount of insurance compensation paid to the exporter.

This means that if an exporter insures an export contract with the ECA and a foreign buyer fails to pay, and the ECA disburses the insurance compensation:

• Currency restrictions on settlement deadlines no longer apply to that amount;
• The exporter is not fined for delays in receiving foreign currency proceeds;
• The bank does not apply foreign currency oversight to this transaction.

The exemption is effective from the day the insurance compensation is credited to the exporter’s current account in a Ukrainian bank.

The adopted decision reduces regulatory risks for exporters using ECA insurance tools and increases the practical attractiveness of state export support mechanisms when operating in foreign markets.

Reference source: https://cutt.ly/HtzYbvma