Abstract:
This thesis entitled “Legal protection of repo market creditors’ rights in case of
insolvency under Rwandan law: a comparative study” focuses at examining the
Rwandan legislations in the context of the protection of repo market creditors in order to
avoid different challenges faced in the repo market transactions. The present thesis
examines the foreign legislations like that of United States of America and Europe to
assess whether some protection aspects may be borrowed from there. After a thorough
analysis was observed that Rwandan legal framework does not clearly guarantee the
protection of repo market creditors especially in the event the counterparty falls bankrupt,
therefore, the clear protection is needed.
In fact, this thesis is divided into three chapters. The first chapter discusses the key
concepts and presents an overview on repo market. The second chapter analyzes the
existing legal framework regulating repo whereby imbalances and ineffectiveness of
regulations relating to the repo market were highlighted; this part of thesis examines the
challenges toward the creditors because of inadequacy of effective regulations which are
related to repo market. Furthermore, the case law was examined which is related to repo
market. The third chapter suggests about the legal mechanisms from privileges of repo
in different countries. In this chapter, foreign regulations were examined in order to learn
from their practices within the protection of creditors in repo market. The establishment
of particular law relating to repo market was suggested.
In brief, the researcher recommends that a clear protection of repo market creditors
against counterparty credit risk should be provided; there should be an effective collateral
liquidation in case the repo borrower becomes insolvent; and lastly the amendment of
insolvency law is also suggested as an effective mechanism.
