14 Dec 2023 18:25

Ukraine could allow repatriation of new dividends

MOSCOW. Dec 14 (Interfax) - The National Bank of Ukraine (NBU), as part of the liberalization of the foreign exchange market, may allow the repatriation of new dividends in order to stimulate investment in the economy, Ukrainian media reported, citing Deputy Head of the NBU Yuriy Heletiy.

"Businesses must invest in Ukraine, and, accordingly, it is extremely important for businesses to receive dividends. We are working on the issue of liberalizing new dividends. What are the important conditions for this decision? We understand the quantitative issue of this decision, so we will proceed from the level of international reserves, and the rhythm of international assistance in making this decision," Heletiy said Thursday during a briefing broadcast on YouTube.

Heletiy noted that the NBU also takes into account the parameters of financial stability and inflation when discussing decisions regarding currency liberalization.

"We will soon move on, I hope, to the practical implementation of the second stage [liberalization of the foreign exchange market] - these are issues of liberalization regarding trade finance, and these are interest payments on loans for business. These are significant volumes, so in order to move on these liberalization measures, it is necessary for us to have the proper amount of reserves," Heletiy added.

In the summer, Bloomberg, citing deputy heads of the NBU Heletiy and Sergei Nikolaychuk, reported that the dividend repatriation plan could be one of the first measures that the National Bank of Ukraine would take towards weakening capital controls and returning to the policy that existed before the start of the military operation in the country in February 2022.