Ruslan Magomedov: When Ukraine wins the war, we will not be able to do without the capital market

Today, February 7, 2023, the Chairman of the NSSMC (National Securities and Stock Market Commission) Ruslan Magomedov took part in the strategic offline session «On war without ties: what we have achieved and what we are preparing for».

The organizer of the event is the National Anti-Corruption Bureau of Ukraine (NABU).

During his speech at the discussion panel, Mr. Magomedov talked about the challenges of the war for the capital markets and its regulator, as well as about the fateful Resolutions of the NSSMC and deregulation. He focused attention on the reforms currently being worked on by the NSSMC: securitization, investment accounts, virtual assets, pension reform, the commodity market – the development of the agricultural sector, and the reform of the NSSMC itself (Law No. 5865).

«We understand that when Ukraine wins, large amounts of investment will come here. Some of them will be direct investments, the other part will go through banking mechanisms, but we cannot do without the capital market. After all, many Western investors are not only used to this market, it is a familiar tool for them. And in order to make it interesting and as convenient as possible, we have to bring our tax legislation into line. Because now it is not very conducive to attracting investments through securities, since the preferences are only for domestic government bonds market», Ruslan Magomedov said.

The Chairman of the NSSMC also added: «If we talk about investments, historically our citizens like to invest in real estate. Now it is a mechanism for providing housing to citizens and a method of investment for some of them. When the post-war economy begins to take shape, mortgages will also become a business. Indeed, mortgages are what will help rebuild our country. That is why we are working on such a financial instrument as securitization, so that the mortgage will work exactly as in all developed countries. For banks, this will become another effective additional tool, not only domestic government bonds market and local loan bonds, but also mortgage securities. For this, legislative initiatives and restructuring of rating agency institutes are necessary, and the NSSMC is working on this. We would also like to involve NABU specialists in this process, because you know what market participants need».

During the session, there was a frank communication between the authorities, banks and the Fintech sector. The market heard the position and expectations of the state, expressed its ideas and wishes regarding development and potential integrations.