Key Highlights:
Regulation Changes: Effective July 24, 2024, the NBU has amended its Regulation on depository and clearing activities to expand the list of clients and depositors it can serve. These changes facilitate foreign financial institutions' and depositories' direct access to Ukrainian marketable debt instruments, excluding government securities.
Account Services: The NBU will now be able to open and service:
- Nominal Holder's Securities Accounts: For foreign financial institutions meeting Ukrainian legal requirements.
- Owner's Securities Accounts: For foreign depositories.
Investment Infrastructure: This initiative aims to integrate domestic and international financial market infrastructure, thereby enhancing foreign capital access to Ukraine. It will support investments in financial instruments issued for the country's reconstruction, including local loans, infrastructure bonds, and bonds from international financial organizations.
Clearstream Integration: The changes also support plans to expand the connection with Clearstream Banking Luxembourg, facilitating broader access to international investors.
IMF Program Alignment: This development aligns with Ukraine's commitments under the Memorandum on Economic and Financial Policy dated June 17, 2024, and is a key focus of the program with the International Monetary Fund (IMF).
Implementation and Resolution: The practical implementation of these changes is a joint effort between the NBU and the National Securities and Stock Market Commission. The amendments were approved by the NBU's Resolution No. 90, dated July 19, 2024, which takes effect on July 24, 2024.
Conclusion
The National Bank of Ukraine's regulatory changes facilitate direct foreign investment in Ukraine's reconstruction efforts, enhancing access to various financial instruments and supporting the country's economic recovery.
