Uganda has published rules to secure the enforceability of close-out netting under ISDA Master Agreement, GMRA and GMSLA contracts with financial institutions.
The regulations address the existing challenge of the enforceability of the close-out netting provisions under the specified financial contracts in the event of the insolvency of a financial institution counterparty and were developed following a technical assistance memorandum of understanding signed between the BoU and Frontclear.
The introduction of the new regulations facilitates specific financial contracts with financial institutions, thereby increasing liquidity and expanding the range of available financial products. This is expected to contribute to the growth and development of the financial industry in Uganda.