In the run-up to the expected year-end secondary legislation on Italian covered bonds (see ASR 5/30/05), Dexia Crediop has moved ahead with its program that functions much like what the market can expect from future covered bond issues.

"Specific legislation regarding covered bonds has been enacted [via] an addition to the Italian securitization law - Law 130/99," explained a Dexia spokesman. "To date there has been no enactment of the necessary secondary legislation from the Bank of Italy or Ministry of Economics & Finance, which is expected by the end of the year but in this context the DCC structure functions on the basis of the securitization law, with specific arrangements tailored to make it similar to a covered bond."

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