The Verkhovna Rada Approves the Securitisation and Covered Bonds Bill at First Reading

The Verkhovna Rada of Ukraine has adopted, at first reading, the draft Law on Securitization and Covered Bonds — one of the key legislative acts for the development of a modern capital market and the harmonization of Ukrainian legal framework with European Union legislation.

The Law creates the opportunity to introduce in Ukraine financial instruments that have been successfully operating in the countries of the European Union for many years. They enable banks and financial institutions to attract long-term financing more efficiently, manage credit risks, and expand lending to the economy.

The adoption of the draft Law creates the preconditions for:

• the development of the structured finance market;
• attracting additional resources by banks and financial institutions;
• increasing the liquidity of the financial system;
• the introduction of new investment instruments;
• the development of long-term lending, including mortgage lending.

For Ukraine, this is not just another Law. It is a step towards building a modern capital market that will make it possible to attract private capital more effectively for the development of the economy and the future reconstruction of the country.

The National Securities and Stock Market Commission (NSSMC) consistently supports the implementation of the legislation necessary for Ukraine’s integration into the European financial area and the creation of a competitive capital market.

Following its adoption at first reading, the draft Law will be revised taking into account the proposals of Members of Parliament and prepared for consideration at second reading.