An internationally accepted framework for international financial agreements, has been identified as a prerequisite for Ghana to effectively compete in global financial markets.
According to a Financial Expert and Head of Global Markets at Stanbic Bank, Ghana, Afua Bulley, ‘to ensure Ghana becomes an important global player in the financial market space, our markets must conform to international standards in order to attract and retain capital. When this is done, the country stands to benefit enormously from funds from international markets’
She critically observed that this was critical in advancing Ghanaian financial markets’.
Afua Bulley was addressing a forum on ‘netting of repos and derivatives under Ghanaian law.
She further noted that: ‘Financial markets, especially for emerging economies, must provide a platform for the supply of funds and for this function to be carried out effectively, the markets require liquidity, efficiency and the appropriate laws and regulations underpinning them. It is for this reason that Stanbic Bank has partnered other stakeholders for the forum on financial markets’.
Mr. Steve Opata, Director, Financial Markets at the Bank of Ghana (BOG), said the Central Bank acknowledged the importance of international frameworks as guiding principles for financial markets agreements and as a result the BoG is working to finalize regulatory frameworks in that regard.
He said the BoG is committed to a strong, viable and stable financial sector that supports Ghana’s development agenda.
‘The Government of Ghana is working on legislation that will make Ghana netting and repo compliant. The adoption of the Global Master Repurchase Agreement (GMRA), the linking of the central securities depository to international markets and the establishment of an insolvency framework are some of the measures put in place by the Central Bank to provide a framework for Ghana’s financial markets’, Mr. Opata said.
The financial markets forum was organized by ENSafrica, Stanbic Bank and GFIM to provide a platform for an exclusive discussion on the Ghanaian bond market and advancement in the sector, specifically around netting in the repo and derivatives markets.
The forum also discussed the potential amendments to legislation on how to develop and grow capital markets.