The Ukrainian authorities are aware of the urgent need to develop the market for government securities, including better
regulation, increased disclosure and enforcement, and more diverse financial instruments. FINREP is assisting the
Ministry of Finance, the regulatory authorities, and other financial market participants to grow the domestic securities market, and to develop non-bank financial institutions. FINREP produces a weekly update of auction results called
FOCUS.
FINREP technical assistance activities focus on:
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FINREP is assisting the implementation of the “Concept for Development of the Domestic Market of Government Securities of Ukraine for 2009-2013 (approved by the Resolution of the Cabinet of Ministers of Ukraine # 316-p dated 25 March 2009). This Concept outlines a broad spectrum of changes to current infrastructure and practices that must be realized for the creation of an effective and well managed domestic debt market that allows government to borrow at the lowest possible market rate.
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The cost of borrowing in the domestic government bond markets can be lowered if the primary and secondary markets are efficient and effective. FINREP is working closely with multiple financial sector stakeholders to reorganize the markets and establish a benchmark yield curve needed to effectively price fixed income securities.
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FINREP is working with the Ministry of Finance and other key financial sector stakeholders to introduce practices that include systematic auctions and secondary trading on the basis of primary dealers system and repurchase and reverse repurchase REPO operations.
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The Ministry of Finance of Ukraine is being assisted in developing measures and introducing practices aimed at improving investor relations (both resident and non-resident). This includes regular publishing of current and accurate information, advance promotion of regular auctions, timely release of auction results, and other marketing methods which will allow the transparent price discovery required the market to develop.
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In consultation with market participants and regulatory authorities, FINREP is advising the Ministry of Finance on improving the capital markets infrastructure for issuing and trading of government debt instruments, introducing or improving for domestic government debt instruments trading systems, registries, depositories, and clearing and settlement systems. The Project conducts research and analysis on these and related issues.
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