ArmInfo. At the meeting on March 6, in the second and final reading, the National Assembly of the Republic of Armenia amended the Civil Code of the Republic of Armenia. Presenting the project, Deputy Chairman of the Central Bank of Armenia Nerses Yeritsyan noted that the main goal of the bill is to introduce the standards of the ICMA - International Capital Market Association in the country.
According to the Deputy Chairman of the Central Bank, it is a question of applying uniform universal standards, which will enable Armenian business entities not to make additional payments when concluding agreements with foreign partners.
In addition, the application of these standards will provide an opportunity to develop and deepen the domestic securities market.
The structured nature of repo transactions determines the execution of a full written agreement prior to the transaction. All repo transactions must be governed by a legal agreement between two interested parties, providing: 1) a complete transfer of ownership of the securities, including any securities that are transferred as a replacement or revaluation of collateral; 2) daily revaluation of assets; 3) sufficient initial margin, maintenance of margin or revaluation; 4) events of non-performance and subsequent rights and obligations of the parties; 5) full set-off of claims between the parties in case of non-fulfillment; 6) conditions explaining the rights of the parties in relation to the replacement of collateral, accrual of coupon and interest payments, including their terms.
The main legal document governing international repo transactions is the Global Master Repurchase Agreement (GMRA).
