Clearstream, NBU depository holding talks on opening of mutual depository accounts – NBU official

Clearstream international settlement and custody organization and the depository of the National Bank of Ukraine (NBU) are holdings talks on establishing a so-called link between the structures: opening mutual depository accounts, Deputy NBU Governor Oleh Churiy has told Interfax-Ukraine.

"We are holding talks with Clearstream on opening of so-called link – the account of the global depository in the NBU depository. We have a letter of intent from Clearstream where they gave consent to open the so-called link. In coming months their specialists will arrive for due diligence," he said in a blitz interview with Interfax-Ukraine.

He said that the initiative would relax the access of foreign investors to Ukrainian government bonds: foreign investors would not have to go to Ukraine and open accounts in a bank if they have an account in Clearstream. They will be able to directly buy Ukrainian securities.

In addition, if any nonresident bus Ukrainian bonds via Clearstream, the securities could circulate abroad for foreign currency.

"If Ukrainian securities become liquid at the level of nonresidents, this would give substantial advantages to the Finance Ministry. This would diversify the base of investors," Churiy said.

In the future when the register of government securities were transferred to the National Depository of Ukraine (NDU), it would be required that Clearstream opens the link for NDU, Churiy said.