Seven new banks signed the joint letter of intent associated with the much-anticipated German true-sale initiative, drawn up between the original six participating institutions earlier this year (see ASR 6/9/03). Thirteen banks are now part of the initiative, including: Commerzbank, Deutsche Bank, Dresdner Bank, DZ BANK, HVB Group, KfW, Bayerische Landesbank, Citigroup, DekaBank, Eurohypo, HSH Nordbank, Landesbank hessed-Thurigen and West LB.

But the true sale initiative hit a bump in May, when changes to the Mittelstand law (which were to benefit small- and medium-sized entities) were delayed and passed on to a conciliation committee. According to industry sources, the conciliation committee would not be addressing the laws that specifically referred to trade tax in securitizations. Nonetheless, the delay was expected to deter implementation of the law until after the summer recess.

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