There is a possibility of the launch of the project in early December
Work is expected to be in collaboration with the commercial banks
Bank of Botswana (BoB) says it has initiated a working relation with Frontclear to help deepen and improve Botswana’s interbank market.
Frontclear is a development finance company based in the Netherlands and established in 2015 to support stable, liquid, and inclusive money markets in emerging and frontier countries.
Moemedi Phetwe, BoB’s Deputy Director of Financial Markets Department told a Bond Market Conference recently that the is in the process of engaging Frontclear to undertake a comprehensive market diagnostic program which includes Money Market Diagnostic Framework (MMDF), legal and regulatory review and reforms (ISDA/GMRA enforceability) and training on repo and swaps for both Bank staff and the market.
In that regard, he said the Bank and Frontclear are currently developing a joint work programme under a Memorandum of Understanding (MoU), that reflects Frontclear’s practical support to the Banks’s efforts to develop the market.
“The work is also expected to be in collaboration with the commercial banks and other relevant stakeholders and Frontclear has already engaged with some of the banks on the subject,” Phetwe said. “There are consultations about the possibility of the launch of the project in early December and I would like to encourage the market to embrace this initiative.”
Frontclear is predominantly funded by the European Governments and Development Finance Institutions. Its main objective is to unlock access to global and local money markets for finance institutions through the provision of credit guarantees to cover credit risk. In addition, Frontclear provides technical assistance (TA) to resolve structural barriers to market development. In that regard, the TA they provide is focused on diagnostics, legal and regulatory reforms, industry training and the development of financial market systems and infrastructure, all targeted towards developing more liquid and inclusive money markets.
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