Poland's tentative steps into the securitization world, after its inaugural deal last year, are gathering pace. Last week, Warsaw-based Bank Pekao launched a small scale pilot deal to see how securitization could work within the Polish legal and tax framework.

The bank will retain the notes on the non-rated 4.3 million Zloty ($1.06 million) transaction, backed by lease payments on computer equipment to Bank Pekao's leasing arm. "We are issuing this bond as a pilot program," said the head of Bank Pekao's leasing arm, Wieslaw Weitz. "The legal structure has been worked out in detail but we want to see how the auditors and tax authorities react to it."

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