“We are talking about corporate bonds and we should not exclude the banks. It is very important to look at the stability and balance of the banks’ balance sheets on medium and long term, which will continue to be the major financing bridge. We are talking about sharing the risks between those with stable sources on medium and long-term (…) We desperately need a law on covered bonds,” BCR vice-president Sergiu Manea said Monday at a seminar on financing the local economy in lei or foreign currency organized by Romania’s Central Bank.
On his turn, BRD-Groupe Societe Generale’s vice-president Claudiu Cercel said that at the end of the electoral campaign, the change of the legislation on the mortgage loans supported bonds should represent a priority for the local authorities.
According to Cercel, though several banks compiled programs with Medium Term Notes issues, the covered bonds may bring a much more significant liquidity volume and attract important resources.
BRD was one of the first banks in Romania to issue bonds.
Romania is the only country in the European Union which did not account for mortgage bonds issues. Since 2012, the banks are negotiating with the regulatory authorities to amend the legislation in force, which is more rigid compared with the EU’s one.
In Europe, the balance of the mortgage bonds touched EUR1,700 billion at the end of 2011, with the largest mortgage bonds issuers being Spain, Denmark, Germany, Great Britain, France and Sweden.