Features of execution of monetary obligations in foreign currency

Credit in dollars - can it be returned in UAH and on what course?

Can a court change the monetary equivalent of an obligation in a foreign currency?

How and when does an executor calculate the amount of debt in hryvnias if the obligation is determined by the monetary equivalent in foreign currency?

These and other questions concerning the execution of monetary liabilities in foreign currency as always arise during periods of currency fluctuations and are relevant not only for debtors and creditors but also primarily for performers.

At the same time, the rules of law and judicial practice give quite specific answers to them.

To begin with, one has to figure out what can be the subject of a monetary commitment. The Civil Code (Articles 524, 533), like the Constitution (Article 99), clearly states that the obligation must be expressed and executed in the currency of Ukraine - the hryvnia, which is the legal means of payment in its territory.

In addition, the provisions of these articles stipulate that the parties may determine the monetary equivalent of a liability in a foreign currency. In this case, the amount payable in hryvnias is determined at the official rate of the respective currency on the day of payment, unless another procedure for its determination is established by the contract or by law or other regulatory act.

Thus, the Civil Code, in particular Part 2 of Art. 533 gives clear and unambiguous answers to the above-mentioned questions - if the loan is taken, for example, in a dollar equivalent, then the amount to be paid in hryvnias will be determined:

a) at the official exchange rate of the dollar, established by the NBU;

b) at the official rate of the dollar, established on the day of payment.

At the same time, another procedure for determining this amount may not be established by a court or an executor, but only by a contract or by law.

These requirements are established by the norms of special laws, in particular Part 3 of Art. 49 of the Law of Ukraine "On Enforcement Proceedings" concerning the conversion of foreign currency into national currency and clause 30.1 of Art. 30 of the Law of Ukraine "On Payment Systems and Transfer of Funds in Ukraine" as of the moment of fulfillment of a monetary obligation.

Unambiguity in the understanding of these norms of legislation is also confirmed by judicial practice. Thus, according to the results of consideration of the case No. 697/307/15-th under the complaint of PJSC "State Export-Import Bank of Ukraine" on actions and decisions of the state executor, the Supreme Court of Ukraine dated 11/01/2017 came to the conclusion that the court decision can not change the content of the contractual obligation " which existed between the parties, that is, it remains a monetary obligation in a foreign currency, and therefore a judicial decision is subject to enforcement, taking into account the specifics stipulated in art. 49 of the Law "On Enforcement Proceedings". At the same time, the repayment of the amount to be recovered by a court decision is calculated in foreign currency, which must be converted into the national currency on the day of payment execution. This means that the debtor, fulfilling the obligations under the executive document in the national currency, should take into account the official exchange rate of the NBU, established for the corresponding currency on the day of payment (that is, the day of transfer of funds to the creditor's account).

(translated using google translate)