15:00 28.08.2020

NBU finally removes obstacles for entering govt bond market by nonresidents – Finance Ministry

2 min read
NBU finally removes obstacles for entering govt bond market by nonresidents – Finance Ministry

The National Bank of Ukraine (NBU), by expanding opportunities for investment in government domestic loan bonds, has finally eliminated obstacles for foreign investors to enter the Ukrainian securities market, the press service of the Finance Ministry has told Interfax-Ukraine.

"The changes adopted by the NBU have finally removed all obstacles to the operation of an alternative way of entering the Ukrainian securities market for foreign investors, namely, direct access to the purchase and sale of government bonds with the help of a "nominee holder," the ministry said.

The press service recalled that in May 2019, thanks to the established "link" between the National Depository of the NBU and the Clearstream international depository, foreign portfolio investors received simplified access to the Ukrainian government bonds market, but now Ukrainian banks that have accounts with the NBU depository will be able to open depot accounts for its foreign clients for the purpose of buying and selling Ukrainian government bonds.

"This innovation may be of interest to foreign investors who do not have a "link" with the Clearstream international depository," the Finance Ministry said.

The press service of the NBU told Interfax-Ukraine that the expansion of opportunities of investing in government bonds is aimed at improving the situation for various groups of investors – both nonresidents and local market players.

"A fairly wide range of changes has been introduced – from servicing the account of a foreign nominee holder, which will simplify the access of foreign investors to the local market, to providing an opportunity for local banks, which are not licensed depository institutions, to become primary dealers in the government bonds market," the National Bank said.

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