The International Capital Market Association (ICMA) has announced the release of a new Global Master Repurchase Agreement (GMRA) legal opinion for Ghana.
This milestone makes Ghana the third African nation, following Mauritius and South Africa, to secure such a legal opinion.
Prompted by requests from members, including the Ghana Stock Exchange (GSE), which manages the Ghana Fixed Income Market (GFIM), ICMA commissioned the legal opinion to assess the enforceability of GMRA netting provisions and the overall validity of the GMRA under Ghanaian law.
This legal opinion offers a solid legal foundation to uphold the GMRA and its netting provisions, thereby enhancing market confidence. It assures counterparties that their transactions are safeguarded under Ghanaian law, promoting stability and reliability within the financial markets.
Abena Amoah, Managing Director of GSE, highlighted the significance of this development: “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 globally recognised as the standard document for repo transactions, facilitating efficient and secure trading practices.
This new legal opinion underscores GSE’s commitment to aligning with international best practices and regulatory standards, rebuilding the GFIM secondary market, boosting investor confidence, and further integrating Ghana’s financial market into the global financial system.