Ukraine's central bank has updated its regulations to allow foreign investors direct access to market debt instruments earmarked for the reconstruction of Ukraine, such as local municipal bonds and infrastructure bonds.
Under the new rules, the National Bank of Ukraine (NBU) can manage special accounts for foreign financial institutions, making it easier for foreigners to invest in Ukrainian securities without an individual account managed by the central bank, according to an NBU statement.
"Opening of a nominal holder securities account for a foreign financial institution will link the infrastructures of the domestic and international financial markets to ensure inflows of foreign capital into Ukraine," the NBU said. "This will open the way for foreign investments in financial instruments issued to rebuild the country."
It said the changes, which took effect immediately, are meant to attract more foreign investment into the reconstruction of Ukraine via instruments such as local municipal bonds and infrastructure bonds, bonds of international financial organizations, and other debt financial instruments.
The new rules also expand the central bank's relationship with international central depository Clearstream Banking, giving foreign investors access to a broader range for hryvnia-denominated financial instruments. Since 2019, the NBU's connection with Clearstream has allowed foreign to access only local hryvnia-denominated government bonds.
