RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of March 31, 2014 No. 182

About reduction of limits of open foreign exchange position of bank system of Ukraine to international standards

According to articles 7 and 44  of the Law of Ukraine "About the National Bank of Ukraine" and based on Regulations on procedure for the establishment of limits of open foreign exchange position by the National Bank of Ukraine and control of their observance by authorized banks approved by the resolution of Board of the National Bank of Ukraine of August 12, 2005 No. 290, registered in the Ministry of Justice of Ukraine on August 29, 2005 for No. 946/11226 (with changes), the Board of the National Bank of Ukraine decides:

1. Enter step-by-step inclusion in calculation of common (long/short) open foreign exchange position of authorized banks of the reserves created for compensation of possible losses on active banking activities in foreign currency (further - reserves), according to the schedule which is given in appendix to this resolution.

Authorized banks can include for calculation of common (long/short) open foreign exchange position reserves in the amount of, exceeding specified in graphics of percent, but no more than the size of the bonds of internal state loans which are available in portfolio of bank with indexed cost.

2. Approve the Calculation procedure authorized banks of limits of open foreign exchange position which is applied.

3. Authorized banks have the right to include the amount of book value of the acquired bonds of internal state loans with indexed cost reduced by the size of the added coupon yield in calculation of common (long/short) open foreign exchange position.

4. Authorized banks with which the National Bank of Ukraine signed written agreements about taking measures to ensuring compliance with limits of open foreign exchange positions or made separate decisions on their activities perform further reduction of the activities with requirements of the National Bank of Ukraine according to established in written agreements or separate solutions of conditions and terms.

5. The authorized bank has the right to perform purchase of the foreign currency arriving from foreign investors for increase in fixed capital of bank, in the amount which is not exceeding or equal to the general size of the created reserves in foreign currency of the 1st group of the Qualifier of foreign currencies and bank metals approved by the resolution of Board of the National Bank of Ukraine of February 04, 1998 No. 34 (in edition of the resolution of Board of the National Bank of Ukraine of October 02, 2002 No. 378, registered in the Ministry of Justice of Ukraine on October 24, 2002 for No. 841/7129) (with changes) (further - the Qualifier), to date of transaction.

The authorized bank which performs the operation specified in paragraph one of this Item shall include in calculation of common (long/short) open foreign exchange position reserves in foreign currency of the 1st group of the Qualifier over established in the schedule of percent in the amount of corresponding to smaller - to the amount of disconnect reserves / the redeemed foreign investment (in equivalent).

Authorized bank in case of excess of the established value of limit of common long open foreign exchange position (L13-1) owing to carrying out the transactions directed to increase in fixed capital has the right not to sell foreign currency in the amount of such excess under condition if reduction in compliance with the established value of limit of common long open foreign exchange position is performed by carrying out restructuring (change of currency of the obligation) of credit debt in foreign currency of borrowers.

The authorized bank shall submit within week term in the National Bank of Ukraine the actions plan on elimination of such excess within year from the date of its origin and the schedule of reduction of common long open foreign exchange position of bank to the established value of limit L13-1.

6. To authorized banks in order to avoid currency risks to take measures for change of currency of accomplishment of obligations for the loans granted in foreign currency for national currency.

7. Recognize invalid resolutions of Board of the National Bank of Ukraine:

of February 28, 2009 No. 109 "About approval of Methodical recommendations to Regulations on procedure for establishment of limits of open foreign exchange position by the National Bank of Ukraine and control of their observance by authorized banks";

of April 13, 2011 No. 110 "About modification of Methodical recommendations to Regulations on procedure for establishment of limits of open foreign exchange position by the National Bank of Ukraine in non-cash and cash forms and control of their observance by authorized banks";

of December 27, 2013 No. 553 "About modification of Methodical recommendations to Regulations on procedure for establishment of limits of open foreign exchange position by the National Bank of Ukraine and control of their observance by authorized banks".

8. To general department of monetary policy (Scherbakova O. A.) provide regulatory legal acts of the National Bank of Ukraine concerning foreign exchange trade according to requirements of this resolution.

9. To assign the organization of accomplishment of this resolution to General department of banking supervision (Rayevsky K. E.), Inspection department, methodologies and licensing of currency transactions (Pasenova N. A.).

10. To impose control over the implementation of this resolution on the acting vice-chairman of the National Bank of Ukraine Prikhodko B. V.

11. The resolution becomes effective since May 01, 2014.

Appendix

to the Resolution of Board of the National Bank of Ukraine of March 31, 2014 No. 182

Schedule of inclusion of reserves in calculation of common (long/short) open foreign exchange position of authorized banks

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