The relevant committee of the Verkhovna Rada recommended that the parliament adopt as a basis and in its entirety the draft law No. 15172 on securitization and covered bonds, which introduces new financial mechanisms in Ukraine that are already used in EU countries. This was reported by the head of the parliamentary finance committee, Danylo Getmantsev. According to him, the document should help solve one of the key problems of the banking sector – limited opportunities for issuing long-term loans.
“Today, one of the main problems is that it is difficult for banks to issue “long” loans due to high risks and lack of resources,” said Getmantsev.
The draft law provides for the launch of a securitization mechanism – a tool that allows combining financial assets into separate pools and attracting investor funds for them. In fact, investors will be able to take on part of the risks, and banks will receive additional resources for lending. The document also introduces the institution of a specialized financing platform (SPF) – the Ukrainian analogue of specialized SPV companies, which are widely used in international financial markets. In addition, the draft law provides for the launch of a new instrument – covered bonds, which will have a dual mechanism for protecting investors: the right to claim both the issuer and a separate pool of assets.
The document also:
opens access to a new asset class for pension funds and collective investment institutions;
expands the right to issue covered bonds for investment companies;
reduces risks for international investors during the transfer of assets;
provides for new rules for rating agencies.
“This draft law will allow the implementation of a program to build affordable housing for millions of Ukrainians,” said Hetmantsev.
In addition, the document provides for amendments to 18 laws of Ukraine at once. The key stage after its adoption will be the preparation of the necessary by-laws of the National Bank and the National Securities and Markets Commission by January 1, 2027.
