May 27, 2021
Milestone in creation of pan-Baltic capital market
With parliament’s adoption today of a covered bond law, Latvia has taken a major step forward in the development of its capital market. The European Bank for Reconstruction and Development (EBRD) provided technical advisory services to support the drafting of the new law, funded by the European Commission’s Structural Reform Programme. Following Estonia’s adoption of a covered bond law in 2019, Latvia’s new law is another milestone in the creation of a pan-Baltic capital market.
Latvia’s Minister of Finance Jānis Reirs said: We would like to note the interest of regional and local market participants throughout the whole process and the long-term potential of the covered bond instrument. The adopted law is the result of fruitful cooperation by stakeholders, including the financial market association and financial supervisory authority, as well as international advice from the EBRD in association with Richa
By Bill Thornhill
01.15 PM
A draft amendment to the Hungarian covered bond regime, that brings it into line with the European Union s Covered Bond Directive, is likely to be a positive for the product s credit and should improve prospects for issuance in euros.
Bankers are hopeful that there will be covered bond supply from Hungary later in the year, depending on when the legal amendments are approved and whether issuers have a funding need.The Hungarian authorities have published a draft amendment to their covered bond law. which proposes strengthening it compared to
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By Bill Thornhill
29 Jan 2021
Amendments to the German covered bond law, which are expected to be signed off within the next few months, contain key details on how soft bullet extensions will be triggered, the interest rate that is applied in such an event and the size of the liquidity buffer required.
The Bundestag is expected to consider the amendments designed to bring the German covered bond law into line with the European Union’s Covered Bond Directive (CBD) and this should receive presidential sign-off in April. The legal changes will be applied in two stages, according to an
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