NBU restricts use of payment cards abroad

NBU restricts use of payment cards abroad

The National Bank has tightened restrictions on payments abroad using payment cards issued by Ukrainian banks for foreign currency accounts.

This was reported on the NBU website.

The restrictions will apply to payments abroad for a number of goods and services, in particular: watches, jewelry, silver items, precious stones, coins, etc.

Thus, the NBU set a monthly limit of UAH 100,000 equivalent for settlements abroad carried out using payment cards opened by Ukrainian banks for foreign currency accounts for transactions with merchant codes 5094 (precious stones, metals and jewelry), 5944 (watches, jewelry and silver products) and 5972 (coin and stamp shops).

“This limit corresponds to the general limit set by the NBU for payments abroad using cards issued by Ukrainian banks for accounts in national currency,” the statement says.

The National Bank also introduced a monthly limit of UAH 500,000 equivalent for payments abroad made using payment cards opened by Ukrainian banks for foreign currency accounts for transactions with merchant code 6513 (real estate agents and managers). Transactions with this code are used to pay management fees, accommodation fees and other related fees.

It is noted that the limit of UAH 500 thousand takes into account the needs of Ukrainians who are outside Ukraine or traveling abroad, and satisfies the needs of 98% of bank clients who carry out such transactions.

“This will avoid attempts to circumvent the restrictions imposed by the NBU on relevant transactions and prevent a significant outflow of capital from Ukraine,” the NBU emphasized.

In addition, the regulator allowed businesses to reimburse coupon payments on Eurobonds that were paid from February 24, 2022 to July 9, 2024 (inclusive). Such transfers are permitted exclusively at the expense of the business’s own foreign currency (not purchased or attracted in the form of a loan or credit from a resident), so this will not have a negative impact on international reserves.

As specified by the National Bank, such operations will be able to be carried out only by those enterprises that have no cases of unfinished currency control on operations for the export of goods during the 12 months preceding the date of the operation.

“This will stimulate businesses to promptly return foreign currency earnings to Ukraine for the export of goods,” the NBU noted.

The relevant changes will come into force on September 10, 2024.