The National Bank of Ukraine (NBU) has updated its regulatory framework to provide foreign investors with direct access to Ukraine's reconstruction tools.
According to the NBU's website, starting from 24 July, the list of clients and depositors that can be serviced by the NBU in its capacity as a depository institution will be expanded.
Here are the accounts a financial institution will be able to open and maintain:
- a nominee securities account for a foreign financial institution;
- a securities account of the owner for a foreign depository.
The NBU explained that the changes will connect the infrastructure of the Ukrainian and international financial markets to ensure access of foreign capital to Ukraine.
This will pave the way for foreign investment in financial instruments issued for the reconstruction of the country. These include local government bonds, infrastructure bonds, bonds issued by international financial institutions, etc.
In addition, it will be possible to expand the link with the international central securities depository Clearstream Banking Luxembourg.
The NBU emphasised that these changes will allow Ukraine to fulfil its obligations under the memorandum with the IMF. The first stage of measures to improve the capital markets infrastructure is currently being implemented.