The National Bank of Ukraine (NBU) improves performance of the domestic government bond market and simplifies the capital movement procedure.

For this purpose, the NBU Board has approved amendments to the regulatory acts, which are aimed at ensuring regulation of the procedure for domestic government bonds’ placement and accounting securities received by the NBU as collateral, as well as regulating operations with the domestic government bonds with non-residents and the procedure for buying foreign currency to return foreign investments abroad. In particular, the amendments envisage:

First, the procedure for servicing trading operations of domestic government bonds to clients of primary dealers (under brokerage agreements) provides access to the primary domestic government bonds market to private investors.

Second, aspects for performing settlements on domestic government bonds with non-residents are determined as follows:

• transactions with banks and non-residents will be allowed without limitations;
• transactions with other counterparties will be permitted only on the stock exchange under delivery against payment;
• in order to repatriate foreign investments in domestic government bonds, non-residents will be obligated to submit the most simplified list of documents .

Third, the amendments address rules for servicing asset-backed refinancing operations; in particular, they envisage the procedure for blocking transactions on domestic government bonds and allow the NBU as the depository institution to perform accounting of the banks’ securities pledged to the NBU.

The described amendments contribute to the improvement in cooperation between the National Bank of Ukraine as securities depositary and its clients, but also they allow to simplify the procedure for currency operations following the results of domestic government bonds sale.

The appropriate amendments to this effect have been approved by the NBU Board Resolution No. 100 of 18 September 2018 On Amendments to Some NBU Regulations. These amendments come into effect on 20 September 2018, with the exception of some paragraphs that will come into effect on 1 November 2018.