IMF requirement at NBU initiative – NSSMC spoke about restrictions on transactions with foreign currency government bonds

From June 30 of this year, the National Securities and Stock Market Commission (NSSMC) will limit transactions of traders with foreign currency government bonds in connection with the requirement of the International Monetary Fund.

This is stated in the commission's message, the Ukrainian News agency reports.

"In fulfillment of the obligations specified in the Memorandum between Ukraine and the IMF, the Commission approved for publication a draft regulatory act that provides for a change in the settlement mechanism for over-the-counter transactions with government bonds denominated in foreign currency. The acceptance of proposals from market participants and interested parties regarding the project will continue for 10 business days until June 6, 2025 (inclusive)," the message says.

The corresponding requirement was formed by international partners at the initiative of the National Bank in order to strengthen control over currency transactions.

According to the NBU proposal, non-bank financial institutions will have to carry out transactions with foreign currency government bonds exclusively under the "delivery versus payment" (DVP) mechanism through the Settlement Center.

At the same time, the NSSMC warns that under the current regulation by the NBU and taking into account the relevant norms by the commission, it will be impossible to sell foreign currency government bonds by legal entities that are already their owners today.

The NSSMC has asked the NBU to resolve this issue and hopes for a positive decision from the regulator.

As the Ukrainian News agency earlier reported, the National Securities and Stock Market Commission previously announced that it would limit traders' transactions with foreign currency government bonds from June 30 of this year.