Ukrainians keep about UAH 1 trillion "under the mattress" – and this money can work for the economy. One way to solve the problem is to create individual investment accounts (IIAs). This was stated by said Ruslan Magomedov, head of the National Securities and Stock Market Commission (NSSMC), during the Kyiv International Economic Forum.

The new instrument will allow Ukrainians to invest in securities and receive a tax benefit. The main condition is not to withdraw funds from the account for five years. In this case, the income can be withdrawn without taxes, the official said. According to him, the instrument will make it possible to attract "long-term" money into the economy.

According to the National Commission on Securities and Stock Market, individual investment accounts could attract up to 5 million investors to the stock market. In the future, they will even be able to buy shares of state-owned companies – PrivatBank, Naftogaz, and Ukrenergo.

The National Commission has already prepared a relevant draft law and is negotiating with the government. Anastasia Ishchenko, editor of the finance department, looked into what individual investment accounts are, why Ukraine needs them, and what the benefits are.

To read this article, subscribe to LIGA PRO
Already have LIGA PRO?
National Securities and Stock Market CommissionOVDP