NBU plans to expand link with Clearstream to securities for Ukraine's recovery in 2025

MOSCOW. Oct 18 (Interfax) - Expanding the link with the Clearstream international depository to securities that will be issued as part of Ukraine recovery efforts is among the key objectives facing the National Bank of Ukraine (NBU) next year, NBU Governor Andrei Pyshny said.

"The possibility of establishing a direct link between the National Depository and Clearstream is being considered. This move will allow foreign investors to access all kinds of securities within Ukraine's depository system," Pyshny said in an interview with Ukrainian media.

Such a step will simplify access for foreign investors and will boost the capacity for using foreign capital to finance Ukraine's recovery, he said.

Measures to develop the capital market and its infrastructure are among the topics being discussed by the NBU with the International Monetary Fund, the Finance Ministry and the National Securities and Stock Market Commission, Pyshny said.

"This issue is multidimensional and requires interaction, expertise and readiness from all participants to move forward at an equal speed," he said.

From an infrastructural standpoint, the NBU acts as a government securities depository, ensuring the reliable functioning of operations with domestic and foreign government bonds, as well as fulfills the function of the general agent in charge of these securities' servicing, placement and redemption, he said.

Acting within its remit, the NBU helps bolster the secondary bond market today even amid the limited functioning of the market's two exchanges, Pyshny said.

"We are interested in the harmonious development of all components to ensure that both the secondary government bond market has the proper infrastructure for transactions, for maintaining the supply and for supporting deals, the primary market is not affected by that, and international private capital can access it through the link with Clearstream," he said.

Maintaining macro-financial stability is key to keeping the appeal of capital markets, Pyshny said. Another key component the NBU has been working on is a military risks insurance option.

"Our shared goal is to ensure that securities that will be issued to finance Ukraine's recovery become attractive to investors. To this end, it is necessary to not only give foreign investors access to these instruments, but allow them to feel the prospects of their investments. And this requires scrupulous and coordinated work at the level of various institutions," Pyshny said.