On December 2019 the Parliament of Georgia approved the legislative package on financial collateral, netting and derivatives. On July 29, 2020, the International Swaps and Derivatives Association (ISDA) published a legal opinion on the enforceability of close-out netting in Georgia.
ISDA legal opinion is a recognition of the compliance of Georgian legislation with international practice.
Both the draft law and the ISDA legal opinion were prepared with the active support of the European Bank for Reconstruction and Development (EBRD). ISDA has published legal opinions on close-out netting in more than 75 jurisdictions around the globe and they are updated annually to reflect any changes in legislation. Georgia has now been added to this list.
Counterparties without access to ISDA industry standard legal opinions need to obtain bespoke opinions separately from law firms, which makes investments more complex and expensive. Therefore the absence of an ISDA industry legal opinion results in counterparties refraining from entering into transactions with Georgian financial institutions. From today it is no longer a hindering factor. The ISDA legal opinion will be available to all counterparties, including financial institutions, corporates, funds and other entities. This will significantly reduce exposure for regulatory capital relief purposes and facilitate derivatives transactions with Georgian counterparties.
The ISDA netting opinion of the Association is relied upon by derivatives counterparties across the globe, it's positive legal analysis will give new impetus to the development of the financial market in Georgia.
See all the news
Franco Frattini - Georgia, straying from the rule of law
Letter to the Newsweek Editor: 'Russia Determined to Wield Power in Georgia'
Caspiannews: Georgia’s Actions to Seize Foreign Company Disrupt Telecommunications Corridor Between Europe & Asia
Turkish cable manufacturer Koc Kablo has opened its first factory in Georgia
TBC Bank announces management change
Oil prices fall further on virus fears, U.S. crude stock build
Update on Shuakhevi HPP
Turkey to open doors to 31 countries for health tourism
Statement by Andrius Kubilius on the EU assistance for Georgia
Wine sales have increased 5 times in the UK - Georgian-British startup
Visa informed banks of the mechanism to process transactions with expired cards
Russian Church, which priest tested positive for coronavirus is closed for several days
S&P: Georgia Heads Toward Recession
Gurian Tea "Gamarjoba" will Appear on the Market from September
Coronavirus: Boris Johnson moved to intensive care
First-Stage Land Usage Permit for APM Terminals Poti
www.stopcov.ge is accessible in minority languages
TBC Bank and OPEC Fund sign a $50 million trade finance loan agreement
How will Nenskra HPP Reduce the Electricity Import?
JSC Nenskra Hydro Shifts to Remote Work