LAW OF UKRAINE On the National Bank of Ukraine CONTENT Section I. GENERAL PROVISIONS ............................................................................................... 5 Article 1. Terms and Definitions ...................................................................................................... 5 Article 2. Legal Basis for the NBU Activities.................................................................................. 8 Article 3. Authorized Capital ........................................................................................................... 8 Article 4. Economic Independence .................................................................................................. 8 Article 5. Budget of Administrative Expenses ................................................................................. 9 Article 51. Distributable Profit.......................................................................................................... 9 Article 6. Primary Objective .......................................................................................................... 10 Article 7. Other Functions .............................................................................................................. 10 Article 71. Measures to Ensure Stability of the Banking System ................................................... 14 Section ІІ. PROCEDURE OF FORMING THE NBU COUNCIL AND ITS POWERS .......... 14 Article 8. Tasks of the NBU Council ............................................................................................. 14 Article 9. Powers of the NBU Council ........................................................................................... 14 Article 10. Constitution of the NBU Council ................................................................................. 16 Article 11. Working Procedures of the NBU Council .................................................................... 18 Article 12. Chairman and Deputy Chairman of the NBU Council ................................................ 18 Article 13. Decisions of the NBU Council ..................................................................................... 19 Article 131. Audit Committee ......................................................................................................... 19 Section ІІІ. ORGANISATION AND STRUCTURE OF THE NBU ........................................... 20 Article 14. Functions of the NBU Board ........................................................................................ 20 Article 15. Powers of the NBU Board ............................................................................................ 20 Article 16. Constitution of the NBU Board .................................................................................... 23 Article 17. Functioning of the NBU Board and Its Committees .................................................... 23 Article 18. Appointment and Dismissal of the NBU Governor ..................................................... 23 Article 19. Duties and Authorities of the NBU Governor .............................................................. 25 Article 20. NBU Deputy Governors ............................................................................................... 25 Article 21. Excluded ....................................................................................................................... 26 Article 22. Structure of the NBU.................................................................................................... 26 Article 23. Excluded ....................................................................................................................... 27 Section ІV. MONETARY POLICY ................................................................................................ 27 Article 24. Monetary Policy Guidelines ......................................................................................... 27 Article 25. Monetary Policy Instruments and Methods ................................................................. 27 Article 26. Reserve Requirements .................................................................................................. 28 Article 27. Interest Rates ................................................................................................................ 28 Article 28. Gold and Foreign Exchange Reserves Management .................................................... 28 Article 29. Open Market Operations .............................................................................................. 28 Article 30. Regulation of Import and Export of Capital................................................................. 28 1 Article 31. Funds of the State Budget of Ukraine and Local Budgets ........................................... 28 Section V. CASH CYCLE MANAGEMENT ................................................................................ 29 Article 32. Monetary Unit .............................................................................................................. 29 Article 33. Powers of the NBU relating to Cash Circulation ......................................................... 29 Article 34. Issue of Cash ................................................................................................................ 30 Article 35. Circulation of Banknotes and Coins............................................................................. 30 Article 36. Hryvnia Exchange Rate ................................................................................................ 30 Article 37. Convertibility of Hryvnia ............................................................................................. 30 Article 38. Procedure of the Replacement of Worn and Damaged Banknotes and Coins ............. 30 Article 39. Withdrawal of Banknotes and Coins from Circulation ................................................ 31 Section VI. ORGANIZATION OF SETTLEMENTS AND ACCOUNTING ............................ 31 Article 40. Regulation of Settlements ............................................................................................ 31 Article 41. Regulation of Accounting ............................................................................................ 31 Section VII. OPERATIONS OF THE NBU ................................................................................... 31 Article 42. Types of NBU's Operations ......................................................................................... 31 Article 43. Participation in International Organizations ................................................................ 33 Section VIII. NBU OPERATIONS WITH CURRENCY VALUABLES ................................... 33 Article 44. NBU’s Authority in Currency Regulation and Supervision......................................... 33 Article 45. Foreign Exchange Market ............................................................................................ 34 Article 46. Discount and Foreign Exchange Policy ....................................................................... 34 Article 47. Composition of the Gold and Foreign Exchange Reserve ........................................... 34 Article 48. Replenishment and Use of the Gold and Foreign Exchange Reserve .......................... 34 Article 49. Safekeeping of the Gold and Foreign Exchange Reserve ............................................ 35 Article 50. Excluded ....................................................................................................................... 35 Section IX. RELATIONS WITH THE PRESIDENT OF UKRAINE, VERKHOVNA RADA OF UKRAINE, AND CABINET OF MINISTERS OF UKRAINE ............................................ 35 Article 51. Accountability .............................................................................................................. 35 Article 52. Relations with the Cabinet of Ministers of Ukraine ..................................................... 36 Article 53. Guarantees of Non-Interference ................................................................................... 37 Article 54. Ban on Lending to the State ......................................................................................... 37 Section X. BANKING REGULATION AND BANKING SUPERVISION. ............................... 37 STATE REGULATION OF NONBANK FINANCIAL SERVICES MARKETS..................... 37 Article 55. Objective and Scope of the Banking Supervision ........................................................ 37 Article 551. Objective of State Regulation of Nonbank Financial Services Markets…………… 37 Article 56. NBU Regulations ......................................................................................................... 38 Article 57. Access to Information .................................................................................................. 38 Article 58. Economic Ratios .......................................................................................................... 39 Article 59. Risk Provisions ............................................................................................................. 39 Article 60. Excluded ....................................................................................................................... 39 2 Article 61. Regulatory Powers ......................................................................................................