ICMA’s Global Master Repurchase Agreement Validation Critical for Ghana’s Financial Market Stability – GSE MD Says
The Managing Director of the Ghana Stock Exchange (GSE), Abena Amoah, has emphasized the significance of the International Capital Market Association’s (ICMA) Global Master Repurchase Agreement (GMRA) legal opinion for Ghana.
She highlighted that the validation of repurchase (repo) transactions under this framework is essential for both local and international market participants.
According to Ms Amoah, the GMRA legal opinion affirms that the agreement is fully valid and legally binding under Ghanaian law.
“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,” she remarked.
This validation provides a strong legal foundation, ensuring that the GMRA and its netting provisions can be enforced in Ghana. Such legal clarity is expected to bolster market confidence by assuring counterparties that their transactions are protected within the Ghanaian legal framework, thereby enhancing the stability and reliability of the country’s financial markets.
The publication of this GMRA legal opinion comes in response to requests from key stakeholders, including the GSE, which operates the Ghana Fixed Income Market (GFIM). The GMRA is widely recognized as the global standard for repo transactions, facilitating efficient and secure trading practices across financial markets.
This development marks a significant milestone for Ghana, making it the third country in Africa, after Mauritius and South Africa, to obtain a GMRA legal opinion.
It further underscores the GSE’s commitment to aligning with international best practices and regulatory standards. Additionally, this step is part of broader efforts to rebuild the GFIM secondary market, boost investor confidence, and further integrate Ghana’s financial markets into the global financial system.
