On 3rd June, 2025, The Rwandan cabinet enacted the law no016/2025 governing the central securities depository qualified financial contracts and netting agreements. The new legislation focuses on financial and capital markets, specifically the Rwandan legislator aims to close the loopholes by implementing statutory effect to close-out netting, a contractual process by which parties to a financial contract terminate obligations and consolidate them into a single net payment upon default. Insolvency or other specified events. The rationale of this new legislation seeks to strengthen the legal framework for financial contracts in Rwanda making more enforceable comparing to the previous law regulating the sector. This legislation covers a range of financial agreements, including derivatives, repurchase agreements, and title deeds and other title transfer collateral arrangements, as the law provides and recognize a broad range of eligible collateral such as securities, letter of credit, guarantees and so on….
In addition, the law also establishes rules for capital gains tax, it provides for financial transactions, with a potential increasing public and efficiency for investors and financial institutions.
#Rwanda #CapitalMarkets #LegalReform #FinancialContracts #GainsTax #Marketstability
