The draft law on securitization and covered bonds recommended for a second reading

The Verkhovna Rada Committee on Finance, Tax, and Customs Policy recommended that the draft Law of Ukraine No. 15172 “On Securitization and Covered Bonds” proceed to its second reading. Following the first reading, amendments were made to the draft law that strengthen market regulations and consumer protection in the financial services sector, and clarify the powers of the Commission and the NBU.

This draft law is one of the key pieces of legislation for the development of capital markets and the alignment of Ukrainian legislation with European regulations. It allows the introduction of securitization and covered bonds in Ukraine — instruments that help EU countries attract long-term financing.

The document was substantially revised prior to the second reading. In particular, it provides for:

• uniform restrictions on market participants associated with the aggressor state, temporarily occupied territories, sanctions, non-transparent structures, and high-risk jurisdictions;
• the same restrictions on financial assets that may serve as the basis for securitization;
• additional protection for consumers of financial services during the assignment of a loan claim;
• clearer rules regarding financial assets that may be included in a securitization pool, in particular non-performing financial assets;
• additional requirements for a specialized financing platform, institutional investors, and other market participants, particularly regarding risk management and the maintenance of information on the origin and quality of assets.

The draft law also clarifies the division of powers between the Commission and the National Bank of Ukraine regarding the regulation and supervision of the relevant instruments.

As a reminder, the Verkhovna Rada passed the draft law No. 15172 on its first reading on 30 June 2026. At that time, the Commission noted that the draft law opens the door to introducing structured finance instruments in Ukraine that will help expand long-term lending, including mortgage lending, attract additional capital, and develop the market for investment instruments.

Commission Chairman Oleksii Semeniuk previously explained in detail how these instruments work and their significance for the Ukrainian capital market in his columns for Ekonomichna Pravda: on securitization — “How ‘Frozen’ Money Can Once Again Work for Ukraine’s Economy”, and about covered bonds — “The Safest Investment Instrument in 250 Years”.