European statistical office Eurostat, said last month that it was in the process of revising its ESA95, the accounting criteria for government related securitizations. But even with the possibility of adapting to more stringent criteria, governments will have to find a way to incorporate securitization as a method to deal with borrowing deficits, market sources report.

Since it lowers financing costs, countries facing mounting deficits are looking at ways to incorporate securitization to better manage their balance sheets. "We've seen this accelerated growth in Europe where [EU] countries have borrowing limits that some countries have breached or are getting close to [breaching]," said one market source. "All of these countries want to be seen as borrowing less, which means that potentially any country would be looking to securitization to comply with requirements," the source added.

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