Ukraine's National Bank improves support conditions for ECA-insured exporters KYIV. Jan 20 (Interfax-Ukraine) – Foreign exchange restrictions on settlement deadlines do not apply to export operations if the right of claim under a foreign economic agreement (contract) has been transferred to the private joint-stock company Export Credit Agency (ECA). According to information published on the ECA's website, this applies on the basis of an insurance agreement concluded with the ECA in accordance with the Law
Foreign exchange restrictions on settlement deadlines do not apply to export operations if the right of claim under a foreign economic agreement (contract) has been transferred to the private joint-stock company Export Credit Agency (ECA).
According to information published on the ECA's website, this applies on the basis of an insurance agreement concluded with the ECA in accordance with the Law of Ukraine "On Financial Mechanisms for Stimulating Export Activities," and within the amount of insurance compensation paid to the exporter.
This provision is enshrined in a resolution of the National Bank of Ukraine (NBU) "On Amendments to the Resolution of the NBU Board No. 67 dated May 14, 2019," which expanded the list of export operations not subject to maximum settlement deadlines.
According to the explanation, this means that if an exporter has insured an export contract with the ECA and the foreign buyer fails to settle, and the ECA pays insurance compensation, then: foreign exchange settlement deadline restrictions no longer apply to this amount; the exporter is not fined for violating deadlines for the receipt of foreign currency proceeds; and the bank does not apply foreign exchange supervision to this transaction.
The exemption applies from the date the insurance compensation is credited to the exporter's current account at a Ukrainian bank.
"The decision reduces regulatory risks for exporters using ECA insurance instruments and increases the practical attractiveness of state export support mechanisms when operating in foreign markets," the statement emphasizes.