Ghana’s Capital Market has moved a notch higher with the launch of guidelines for the Global Master Repurchase Agreement, GMRA .
These guidelines will among other things facilitate the flow of cash and Securities in Financial markets, provide low-risk options for cash investments and also foster price discovery by primary market activities.
Vice President Dr Mahamudu Bawumia, who officially launched the GMRA guidelines in Accra, said it will address some loopholes in the capital market and make the sector less risky.
He expressed the hope that the guidelines will put Ghana in a better position on the financial landscape.
The Vice President stressed that the cleanup of the financial sector being undertaken by the Bank of Ghana and the Securities and Exchange Commission will in the long run make Ghana’s financial sector robust.
The GMRA, on the other hand, is a master agreement used globally and published by the International Capital Market Association and contains standard provisions suitable for the most common types of repo business (a form of short-term borrowing, mainly in government securities) and may be supplemented by market standard products or jurisdiction specific annexes.
