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Ukrainian American Bar Association

Ukraine's National Bank Requires Individual Licenses for Surety Payments

26 Nov 2010 6:31 PM | Myroslaw Smorodsky (Administrator)

Ukraine's National Bank Requires Individual Licenses for Payments
by Ukrainian Sureties to Foreign Creditors

BY Armen Khachaturyan,  Senior Partner, Asters Law Firm, Kyiv
     On 15 November 2010 the National Bank of Ukraine (the "NBU") issued an official clarification letter (the "Letter") regarding the currency restrictions applicable to payments by Ukrainian sureties and guarantors to foreign creditors under guarantee (garantiya) and surety (poruka) agreements. In the Letter the NBU explained that in order to make a payment to a foreign creditor a Ukrainian surety must obtain an individual license from the NBU unless the surety is an authorized bank or financial institution.
     At the same time Ukrainian banks can make payments as guarantors or sureties without an individual license. Non-banking financial institutions do not need an individual license for such payments if they have a general license for transactions with foreign currency.  Read Article http://www.asterslaw.com/upload/medialibrary/newsletters/asters_newsletter_eng_23_11_10.html

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