Ghana Secures Position as Third African Nation with Global Master Repurchase Agreement Legal Opinion
The International Capital Market Association (ICMA) has announced the publication of a new Global Master Repurchase Agreement (GMRA) legal opinion for Ghana. Ghana is the third country in Africa to achieve this feat after Mauritius and South Africa.
Following requests from members, including the Ghana Stock Exchange (GSE) which operates the Ghana Fixed Income Market (GFIM), ICMA commissioned a legal opinion for Ghana that covers the enforceability of the netting provisions of the GMRA, as well as the validity of the GMRA under the laws of Ghana.
This opinion provides a clear legal basis to enforce GMRA and its netting provisions and is expected to boost market confidence. It offers assurance to counterparties that their transactions are protected under Ghanaian law, promoting stability and reliability in the financial markets.
In her remarks, the Managing Director of GSE, Abena Amoah said: ‘This legal opinion asserts that the GMRA, in its entirety, is valid and legally binding under the laws of Ghana. The validation is crucial for both local and international participants engaging in repurchase (repo) transactions in Ghana.’
The GMRA is recognized as the standard document for repo transactions globally, facilitating efficient and secure trading practices.
This development underscores GSE’s commitment to aligning with international best practices and regulatory standards, rebuilding the GFIM secondary market to boost investor confidence, and further integrating its financial market into the global financial system.
