European Business Association proposes Ukraine increase deadlines of settlements on export/import transactions to 180 calendar days
MOSCOW. June 24 (Interfax) - The European Business Association (EBA) has called on Ukrainian Prime Minister Denys Shmyhal and National Bank of Ukraine Governor Kyrylo Shevchenko to review and revise a number of regulations, including increase the deadline for settlements on exports and imports of goods to 180 from 120 calendar days, reasoning that the production time of some types of goods can reach up to two or three months.
Ukrainian media reported that the EBA also proposed abolishing restrictions on settlements by postal operators on transactions involving the transfer of cash-on-delivery payments denominated in Ukrainian hryvni and foreign currency collected from recipients of international mail in Ukrainian territory, in line with agreements between Ukrainian postal operators and foreign postal services.
The restrictions prevent Ukrainian postal operators from honoring their obligations to foreign postal operators, including as regards transfers of cash-on-delivery payments from Ukrainian recipients of foreign of international mail, thus violating not only foreign economic contracts but also regulations of the Universal Postal Union, of which Ukraine is a member, the EBA said.
The EBA proposed that the regulation requiring that banks halt the issuance of electronic money, the topping up of e-wallets, and their circulation be abolished and that currency restrictions for non-resident insurance companies offering reinsurance services be lifted.
The EBA also proposed lifting currency restrictions on international payment systems in purchasing and transferring foreign currency abroad to refund incomes from operations in Ukraine and permitting corporate issuers of public debt to buy foreign currency in Ukraine and transfer it abroad to honor obligations to foreign creditors.
The EBA also praised the NBU for maintaining macroeconomic stability in Ukraine and welcomed the adoption of bill reinstating import duties and VAT starting July 1.