Polish law change should lift covered bond volumes

By Bill Thornhill
03 Apr 2014

An overhaul of Polish covered bond law will increase issuance, said market participants. The reforms should raise loan-to-value limits, allow soft bullets and mandate minimum overcollateralisation, according to an English translation of the text obtained by GlobalCapital.

The law change is meant to encourage Polish banks to lengthen their funding maturities by making covered bonds a more attractive funding source.

The contents of the bill should be accepted in mid-April, and the law is scheduled to be passed at the end of this year. But bankers ...

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