Rada allows ARMA to buy FX govt bonds

The Asset Recovery and Management Agency (ARMA) will be able to invest 80% of the transferred seized currency funds into foreign currency government domestic loan bonds.

Bill №10397 amending the law on ARMA was adopted by the Verkhovna Rada on Tuesday with 299 votes, while the minimum required was 226 votes.

The explanatory note to the document indicates that at the beginning of the year, ARMA had approximately $15 million in its accounts.

The agency said that placing these funds in bank deposits yields less than 1% annually, whereas rates on U.S. dollar-denominated government bonds exceed 4% and those on euro-denominated bonds are at 3%. ARMA also clarified that in the event of the cancellation of the seizure, if the income from such bonds exceeds the income from the bank deposit agreement, the difference is transferred to the state budget.