Law on limited cash transactions to blame

Due to limitations of cash payments over 150 thousand UAH from 1 September, flat buyer won't be able to pay the seller with cash, instead they will have to open a bank account, credit on it the right amount and then transfer it to the seller.

The amount of additional financial burden on the transaction, according to various estimates, may be from 1 to 3% of the cost of purchased housing.

«All payments are in Ukrainian currency, while savings are mostly in USD. The buyer will need to bring a sack of dollars to the bank, exchange them to the hryvnia, put in the account and transfer them to the buyer's account. In all these operations the Bank will charge a commission», said the director of «State expert bureau» Anatolii Topal.

This is one of the arguments that many realtors now «pressure» potential buyers and sellers, offering to sell or buy flats before 1 September.

«What do you mean, scare? realtors Simply tell clients that after 1 September the financial burden on transaction will increase. In addition, customers there will be less. At least a third of buyers are not willing to pay an extra. Even those who could afford to buy something will abstain. Just to make it clear, where will go the information about the transaction, whether they later be chased by the tax inspector «, said the president of the Union of Realtors of Ukraine Oleksandr Rubanov.

As reported earlier, on July 2 the Ministry of Justice of Ukraine registered the National Bank’s resolution of 6 June 2013 № 210 «On establishing threshold of cash payments.»

According to the press service of the Ministry of Justice the NBU Resolution was awarded registration number 1109/23641. Registration in the Ministry of Justice is a prerequisite for entry into force. The text of the document has not yet been made public.

As you know, this resolution the National Bank has limited cash transactions to the amount of 150 thousand UAH.

Limitation enters into force on 1 September 2013 and will apply to cash payments between individuals and legal entities and individuals together under the agreements sale to be notarized.

Earlier, the National Bank assessed the effect of the introduction of restrictions in the 14-16 billion a year in additional liquidity for banks, as well as added 0.2% to GDP growth.