Monday October 31 2016
News Source: Global Exchanges
Focus: Stock Exchange Corporate Governance
Type: General
Country: Armenia
Link: http://www.ebrd.com/news/2016/armenian-parliament-passes-financial-market-laws.html
The Armenian parliament has passed a package of laws regulating the local financial markets and amendments to the law on the securities market, following close cooperation with the European Bank for Reconstruction and Development (EBRD).
The new law provides for the enforceability of derivatives transactions, including netting, close-out netting and financial collaterals, amends over 17 laws and introduces more than 15 new regulations to Armenia’s financial legislation, including settlement finality.
The EBRD provided technical cooperation to the Central Bank of Armenia for the drafting of the package. This project was also coordinated with, and supported by, the International Swaps and Derivatives Association (ISDA).
The legal package adopted by parliament opens the door for hedging tools, including foreign currency and interest rates and allows banks and corporates to properly manage their risks. This is an important step to attract investors, including the EBRD.
The EBRD has worked closely with the Central Bank of Armenia to improve the functioning of capital markets in the country, strengthen the local capital market and increase local currency lending.
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