International support: Memorandum of Understanding signed between the NSSMC, Warsaw Stock Exchange and EBRD

Today, on 06.07.2023, the National Securities and Stock Market Commission (NSSMC), the European Bank for Reconstruction and Development (EBRD) and the Warsaw Stock Exchange (GPW) signed a Memorandum in which they join forces to strengthen capital markets to help Ukraine’s economy recover from the russian invasion.

The parties are committed to establishing structured cooperation to facilitate Ukraine’s recovery by creating the conditions for capital markets to become a significant source of financing and attract international and local investment.

The partners will conduct market and regulatory assessments, as well as due diligence on the development of capital markets infrastructure in Ukraine. In addition, they will work on developing options for potential EBRD and GPW support in the development of capital market infrastructure in Ukraine.

«Our international partners from the WSE and EBRD continue to actively support Ukraine to restore its economy in the most difficult time – the military time. Today’s memorandum is an important step towards the development of Ukrainian capital markets and organized commodity markets, and attracting investments in the future. The path taken and the results achieved by WSE in the local market are a real confirmation that it is possible and there is accumulated experience in creating modern capital markets and relevant infrastructure in Eastern European markets within the EU market», said Arsen Ilin, a Сommissioner, during the signing.

«A working group consisting of representatives of the signatories to the Memorandum of Understanding and other stakeholders will be established to support potential joint investments by GPW and EBRD in Ukraine’s capital markets. We are also planning joint activities to conduct a state examination and an updated diagnostic assessment of Ukraine’s capital markets at the stage of post-war reconstruction», said Marek Dietl, President of the Board of the Warsaw Stock Exchange (GPW).

«Together we will help Ukraine strengthen its capital markets and attract international investment to support its recovery. Our goal is to bring international expertise to support the development of these markets to ensure that transparent and efficient market mechanisms, fully compliant with good governance and regulation, are in place to channel private sector finance to Ukraine during the reconstruction phase», Elisabetta Falcetti, Regional Director, Head of Poland and the Baltic States, EBRD.

The Memorandum of Understanding provides for the implementation of specific measures, such as
– exchange of information, including reports on technical assistance projects
– financial forecasts,
– diagnostic market analyses,
– regulatory assessments, and other technical information on the development of capital market infrastructure and local financial markets in Ukraine.
It is also important to identify options for possible support from the EBRD and GPW for the development of capital markets infrastructure in Ukraine.