Debt on foreign currency obligations collected at Ukrainian National Bank's exchange rate on day of execution - Supreme Court

MOSCOW. Oct 11 (Interfax) - The hryvnia equivalent payable in the event of a court's recovery of a debt on a foreign currency obligation will be calculated at the official exchange rate of the Ukrainian National Bank on the day of court order execution, Ukrainian media said, citing a statement on the Ukrainian Supreme Court's website.

"If the obligation specifies a monetary equivalent in foreign currency, the amount payable in hryvnia is calculated at the official exchange rate of the relevant currency on the day of payment, which, in the event of a dispute between the parties and its resolution by the court, corresponds to the day of court order execution," the Supreme Court's Grand Chamber said.

The absence of a reference to the currency of payment in the agreement does not override the public policy by which the hryvnia is the only legal tender on Ukraine's territory irrespective of the currency of obligation between resident individuals, it said.

"When a court collects a debt in the equivalent of a foreign currency at the National Bank's exchange rate on the day of court order execution, the order indicates only one sum of the debt (in foreign currency), while the amount payable in hryvnia is calculated by a state or private enforcement officer at the time the debtor makes the payment to execute the order ruling," the Grand Chamber said.