Govt recommends that NBU extends period for returning FX earnings by 1 month for some foodstuff, for 3 months for defense industry, mechanical engineering
The government has recommended that the National Bank of Ukraine (NBU) extend the maximum period for the return of foreign currency earnings from the export of certain agricultural products, particularly wheat and rye, to 120 days, which was previously reduced from 180 to 90 days, according to a statement from the Ministry of Economy on Friday.
According to the statement, the Cabinet of Ministers also believes it is necessary to extend the payment terms for export-import operations in the engineering sector, the defense industry, and long-haul delivery operations from 180 to 270 days.
First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko noted that supplying weapons to the army and developing the defense industry are priorities for Ukraine, and the state must provide producers with all necessary conditions for this.
These changes were made to the Cabinet of Ministers' order from February 13, 2019, No. 76 "On Approving the List of Goods and/or Sectors of the Economy for which the National Bank has the Right to Establish Exceptions and/or Peculiarities in the Implementation of Protective Measures Provided for in Paragraph One of Part One of Article 13 of the Law of Ukraine 'On Currency and Currency Transactions'."
As reported, despite numerous requests, the National Bank has remained opposed to initiatives to extend the return periods for export foreign currency earnings in various sectors, proposing instead to expand the list of goods with reduced return periods.
National Bank Governor Andriy Pyshnyy cited data indicating that after the reduction of the foreign currency return period for agricultural products from 180 to 90 days in November 2023, the balance of receipts from non-resident transactions in the first quarter of 2024 was positive, averaging $134 million per month, whereas in the second half of 2023, it was negative, averaging $1.3 billion per month.
Meanwhile, on April 5, the chairman of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, Danylo Hetmantsev, following a meeting with the National Bank, the Ministry of Economy, and the Ministry of Agrarian Policy and Food, sent a letter to the Cabinet of Ministers requesting consideration of restoring the 180-day return period for agricultural exporters, which had previously been halved.
