Ukraine is experiencing an increased demand for capital to renew and expand its industry. Ukrainian banks are primarily focused on improving their balance sheets, resulting in interest rates for local currency debt exceeding 20%. Demand is high for equity capital for operationally strong companies in attractive market segments with healthy balance sheets who seek working capital to finance growth, develop exports or modernize production.
The Law On Currency and Currency Operations — informally known as "visa-free travel for capital" — took effect in February 2019. All existing restrictions were gradually removed, and eventually, FX transactions in Ukraine are now conducted on the principle that "everything that is not expressly forbidden by law, is allowed." This much facilitated the conduct of international economic activities by businesses and opened our country up to an inflow of foreign capital. Such results are a green light for the investors who are just considering and exploring the opportunities of the Ukrainian investment market.
The new rules continue the NBU's direction towards currency liberalization that included simplification of opening, use and closing of accounts, and changes in the procedure of obtaining loans from non-residents. In a recent wave of currency liberalization, NBU cancelled the requirement for the mandatory sale of foreign currency income and all limits for dividends repatriation.