NBU to revise deposit restrictions after cooperation with IMF resumes – NBU deputy chief

Monday, May 16, 2016 - 23:10 (EEST) Section: Latest news

National Bank of Ukraine after the resumption of cooperation with the International Monetary Fund, in addition to lifting the ban on repatriation of dividends, intends to soften current restrictions on the withdrawal of deposits, NBU Deputy Governor said in an exclusive interview with UNIAN.
”In addition to the ban on dividends, we see that a ban on deposits, too, needs to be canceled or mitigated. This causes a lack of confidence in banks. The depositors with a 200,000 deposit, with the limit of 50,000, understand that it won`t take that long to take their money back, but on a subconscious level, they fear that this limit may be lowered again. So they just don`t bring their money into the banking system. It is important to send positive signals after the crisis,” said Solohub, responding to a question about the NBU`s plans to liberalize the currency market after the resumption of cooperation with the IMF.
He noted that the problem of administrative restrictions lays in their considerable number and diverse ways they affect the market, and that`s why the businesses have no universal wishes for abolishing certain restrictions.
”Most of them are troubled with the restriction on dividends. But there are several companies who have asked not to remove this ban, fearing that they will remain with no currency, as it may all be transferred to the shareholders. Exporters are troubled with the mandatory sale of foreign currency earnings. Importers are troubled with the so-called T+2 rules purchasing currency,” said Solohub.
As UNIAN reported earlier, the National Bank of Ukraine continued gradual liberalization of temporary anti-crisis restrictions on the foreign exchange market, introduced in 2014-2015. From May 11, it abolished the compulsory sale of currency for implementing foreign investments in Ukraine. Also, the regulator has reduced by one day a period of booking by authorized banks of the hryvnia funds for the purchase of currency on behalf of customers, and now the purchase of currency will be available on the third business day (a T + 2 mode).
National Bank announced a further easing of administrative restrictions on the foreign exchange market after the resumption of cooperation with the International Monetary Fund. In particular, the regulator announced plans to lift the ban on repatriation of dividends on the results of evaluation of their volumes.