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Ukraine joins the international securities depository

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According to the press release of the NBU, on March 13 the international depository of securities Clearstream and the National Bank signed an agreement on correspondent relations for the further opening of a securities account with the depository of the National Bank.

We note that Ukraine for the first time in its history joins the international securities depository. Establishing a relationship with Clearstream makes it easier for foreign investors to access the Ukrainian securities market, namely, the government domestic bonds (GVH). Now, payments for hryvnia-based government bonds will be carried out through the ICSD system, which will significantly reduce the transactional and time costs for investors to conduct such transactions.

At the same time, signing a contract with Clearstream will increase the attractiveness and liquidity of the government securities market in Ukraine. The Ukrainian government will benefit from increasing the number of sources of long-term financing, reducing the cost of debt funds and improving the currency structure of public debt due to the demand for securities denominated in hryvnia.

So, we come to the conclusion that correspondent relations with the international depositary Clearstream will ensure the inflow of foreign capital into the Ukrainian economy and strengthen its financial stability.

Over the past three years, we have systematically developed the primary market for government bonds, bringing it in line with international best practices. The launch of Clearstream in Ukraine is a longawaited step towards opening the Ukrainian government bonds for foreign investors, added Oksana Markarova, Finance Minister of Ukraine.

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