Facts

Ukraine optimizes ownership structure of National Depository of Ukraine to attract intl investors – IMF memo

Ukraine optimizes the ownership structure of the National Depository of Ukraine, which is a central depository (CD), in order to create the necessary prerequisites for attracting international investors, which is a key element of the target model of the capital market infrastructure, according to the memorandum of cooperation with the International Monetary Fund (IMF), updated following the Eighth Review of the Extended Fund Facility (EFF) Arrangement.

"We will develop a roadmap to facilitate the transfer of the state's share in the NDU's authorized capital to the management of the NBU to be approved by the Financial Stability Council (FSC) by end-July 2025," the document published on the Fund's website reads.

It also notes that the NBU and the National Securities and Stock Market Commission (NSSMC) have implemented the necessary mechanisms for foreign investors to directly access marketable debt instruments – municipal bonds and other debt instruments related to the reconstruction of Ukraine.

"The NSSMC, National Depositary (NDU), and NBU will target establishment of a direct link between the Central Securities Depository (CSD) and foreign CSDs by end-July 2025 to expand foreign investors' access to a broader range of instruments and markets," the updated memorandum reads.

According to it, an action plan for the practical implementation of the target capital market infrastructure model, developed by the National Bank in consultation with the NSSMC, the Ministry of Finance and international financial institutions, was to be developed by the end of June 2025, but currently there is no information about it.

In NDU, as of the beginning of this year, the National Bank directly owned 25%, and another 10.9399% belonged to its Corporate Pension Fund, while the state represented by the National Securities and Markets Commission owned 25%, Oschadbank owned 24.9903%, and Ukreximbank owned 9.9903%.

The National Depository's revenue last year increased by 2.7% to UAH 109.75 million, while net profit fell by 46.7% to UAH 8.98 million.

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