Ukraine's NBU allows residents to repay certain types of foreign loans

MOSCOW. June 15 (Interfax) - The National Bank of Ukraine (NBU) allowed residents to repay certain categories of foreign loans, in particular, those secured by a guarantee or surety of an international financial organization, as well as those granted with the participation of a foreign export credit agency or a foreign country via an institution authorized by it or via a foreign legal entity starting from June 16, the Ukrainian media reported on Thursday, citing the NBU website.

"The National Bank decided to allow residents to transfer funds abroad to repay certain categories of foreign loans and credits. Besides, additional measures to ease the forex restrictions are being considered now," the statement said.

The National Bank has also determined that residents will be able to carry out these transactions in accordance with the terms of the repayment of funds and interest payments under the terms of the loan agreement.

This precautionary measure will level out the unproductive capital outflow, protect international reserves and the stability of the forex market, it said.

As estimated by the National Bank, thanks to the introduction of these easing measures, the inflow of new credit facilities in Ukraine will largely exceed their outflow due to the repayment and servicing of existing loans. In particular, allowing the transfer of funds abroad for the repayment of certain categories of foreign loans will improve the conditions for raising funds for Ukraine and will enhance the ability of international partners to channel funding for the recovery of the Ukrainian economy.

The NBU has made the appropriate decisions to relax the forex restrictions, taking into account the stable situation in the forex market, the high enough level of international reserves and improvement of the situation with the urgency of funds in the banking system.

The National Bank is in active talks with the Ukrainian government and foreign partners, in particular, with the International Monetary Fund (IMF), on further easing of the forex restrictions, it said.