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Covid-19 coronavirus: Upcoming changes relating to derivatives and similar financial transactions with Czech counterparties

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Vybiral Petr
Petr Vybiral

Partner

Prague

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Kirner Tomas
Tomas Kirner

Associate

Prague

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09 April 2020

The Czech Parliament is debating a set of new draft bills that are likely to affect a myriad of financing transactions on the Czech market. The bills are expected to enter into force fairly quickly in the course of April 2020. 

We have prepared a summary of the most relevant upcoming changes relating to derivatives and similar financial transactions entered into with Czech counterparties under the Czech Banking Association Master Agreement for Financial Transactions, the ISDA Master Agreement, the Global Master Repurchase Agreement and the Global Master Securities Lending Agreement.

In particular this publication looks at:

  • Extraordinary Moratorium and Related Amendments to Czech Insolvency Laws
  • Impacts on Transactions entered into under the Czech Master Agreement, ISDA Master Agreement, GMRA and GMSLA
  • Applicability of Bankruptcy or Insolvency Event of Default due to initiation of the Extraordinary Moratorium
  • Applicability of Failure to Pay or Deliver Event of Default during the Extraordinary Moratorium
  • Suspension of Payments under Credit Facilities and Similar Financing Agreements

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