NBU Eases Foreign Capital Access for Ukraine's Recovery

25 июля 2024 / Экономика

The National Bank of Ukraine (NBU) has granted foreign investors direct access to market debt instruments (excluding government securities) aimed at rebuilding and restoring Ukraine. This was announced by the NBU's press service.

«The National Bank has approved changes to the Regulation on Depository and Clearing Activities and the Settlement of Securities Transactions by the NBU, to provide foreign investors with direct access to market debt instruments (excluding government securities) aimed at rebuilding and restoring Ukraine," the statement reads.

What's Changed

Starting from July 24, 2024, the list of clients and depositors that the National Bank can serve in its capacity as a depository institution is expanded. Specifically, the NBU will now be able to open and manage a nominal holder securities account for a foreign financial institution that meets Ukrainian legislation requirements, and a securities account for a foreign depository.

These changes will help establish the infrastructure necessary for attracting foreign investments into Ukraine. Opening a nominal holder securities account for a foreign financial institution will align the infrastructure of domestic and international financial markets, ensuring foreign capital can access Ukraine. This will pave the way for foreign investments in financial instruments issued for the country's recovery. This includes local loan bonds, infrastructure bonds, bonds of international financial organizations, and other debt financial instruments aimed at Ukraine's restoration.

The changes also enable the implementation of announced plans to expand the «link» with the international central depository, Clearstream Banking Luxembourg.
These amendments will ensure the fulfillment of the provisions of the Memorandum on Economic and Financial Policies with the IMF.
The issue of creating mechanisms for direct access of foreign investors to market debt instruments, excluding government securities, is a focal point of the program with the International Monetary Fund.

«The practical implementation of this initiative is a joint effort by the National Bank and the National Securities and Stock Market Commission. These changes will allow Ukraine to meet its commitments outlined in the Memorandum on Economic and Financial Policies dated June 17, 2024. Currently, the first stage of measures to improve capital markets infrastructure is being implemented," the regulator stated.

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