Polish legislatures inched closer to a consensus on specific rules for tailor-made securitizations. A final set of rules could prove to be a boon to the market, a source said.

So far this year, the country's first domestic securitization program received ratings at international standards: DTC Real Estate Finance S.P. Industry sources believe the potential for future issuance exists, especially if the country adapts to more user-friendly regulations going forward.

Earlier this year details emerged of a new bill that would facilitate government-sponsored securitizations - a potential growth area within the Polish securitization market (see ASR 7/7). But market sources believe there's more potential for the securitization of bank assets that, up to now, has been hampered by existing legal and tax hurdles.

A securitization prospectus was introduced at the end of 2002 with the aim of reducing costs. It's difficult to gauge exactly when the first transactions will emerge that make use of the proposed set of guidelines, as it has yet to pass through parliament, but it is possible that a transaction could hit before the end of the year. "We are hoping that the prospectus passes through parliament in the coming weeks," said one market source.

Once it passes through this legislative body, industry players should have a better concept as to how structure future deals. "We're hoping next year will be a busy year for Polish ABS."

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