HM Treasury decision expected next week

The Cover understands that HM Treasury will make an announcement next week on whether or not it will delay implementation of the UK’s Recognised Covered Bond framework, which was expected to be effective from 1 January 2008. The possibility of such a delay was highlighted last Friday (October 26) when the Investment Management Association attacked the planned framework, and it has now said that it wants criteria relating to borrowers’ creditworthiness added to prevent the inclusion of “subprime” mortgages.