BAKU, Azerbaijan, January 16. Businesses in Kazakhstan will be able to better hedge their currency exchange and interest-rate-related risks thanks to a new regulatory framework developed with the help of the European Bank for Reconstruction and Development (EBRD), a source at EBRD told Trend.
According to the statement, the framework consists of Netting Law and Resolution 77. The Netting Law helps reduce risks in financial contracts between two or more parties by combining or aggregating multiple financial obligations.
Resolution 77 has already been adopted by the Agency for Regulation and Development of the Financial Market of Kazakhstan.
The new legal framework was developed by “Dentons Kazakhstan” in close cooperation with the National Bank.
Consequently, Kazakhstan now has a fully effective legal and regulatory framework for cross-border, over-the-counter derivative and repurchase agreement transactions.