Bank of Zambia Draft Global Master Repurchase Agreement Circular 18/2024

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Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS

BOZ/EXEC/DG/gmra/am

October 29, 2024

CB Circular No. : 18/2024

To : All Commercial Banks Treasurers

DRAFT GLOBAL MASTER REPURCHASE AGREEMENT

Reference is made to the above subject.

Kindly be advised that Bank of Zambia (BoZ) is now promoting the use of the Global Master Repurchase Agreement (GMRA) 2011 version, published by the International Capital Markets Association (ICMA) and the Securities Industry and Financial Markets Association (SIFMA). In this regard, the BoZ is conducting a review of the GMRA to align it to the changes in the market structure as well as the global market practices. The review is meant to enhance interbank money markets by managing counterparty risks better and augmenting interest rate based monetary policy transmission.

The GMRA will be signed both vertically (between the Bank of Zambia and commercial banks) and horizontally (between commercial banks). The GMRA is standard, generally acceptable and sufficiently clear for execution. Commercial banks are however free to make proposals which will be considered in Annex I of the Agreement. We expect that negotiations on the GMRA will be restricted to what is proposed in Annex I.

We will appreciate receiving your comments on the GMRA by November 15, 2024. Submissions should be emailed to Mr Alick Mwanza and Ms Lyasanika Mwambazi on alungu@boz.zm and lmwambazi@boz.zm, respectively.

Attached is a draft GMRA and a word version of Annex I for your ease of reference.

[Signature] Francis Chipimo (PhD) DEPUTY GOVERNOR

cc Governor Deputy Governor – Administration Director – Financial Markets Director – Prudential Supervision General Counsel and Bank Secretary

Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm