The NSSMC informs about upcoming changes in the regulation of over-the-counter transactions with FX-denominated government bonds (OVDPs) at the request of the IMF

In fulfillment of the commitments outlined in the Memorandum between Ukraine and the IMF, the Commission has approved for publication a draft regulatory act that proposes changes to the settlement mechanism for over-the-counter transactions involving government bonds denominated in foreign currency.

The acceptance of proposals from market participants and interested parties regarding the draft will continue for 10 working days, until 06 Jun 2025 (inclusive).

Please send proposals and comments to: [email protected].

The respective requirement was formulated by international partners at the initiative of the National Bank, with the aim of strengthening control over foreign exchange transactions.

According to the NBU’s proposal, non-bank financial institutions will be required to carry out transactions with FX-denominated government bonds exclusively using the “delivery versus payment” (DVP) mechanism through the Settlement Center.

At the same time, the NSSMC cautions that under the current regulations of the NBU and the applicable provisions established by the Commission, it will be impossible for legal entities that currently own FX-denominated government bonds to sell them.

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