The Law of Ukraine “On Mortgage Bonds”, which was enacted in early 2006, marked the birth of one more European market of mortgage refinancing. UNIA specialists took active part in developing this law. Currently, they are working jointly with the State Securities and Stock Market Commission on drafting regulations under this law.

Enactment of the Law “On Mortgage Bonds” opens a new prospect for Ukrainian financial sector development. UNIA, together with Pragma Corporation and under assistance of USAID-funded program, participates in a pilot project in issuance of mortgage bonds by a number of Ukrainian banks. This project is expected to pave a road for efficient refinancing of mortgage loans for the entire Ukrainian banking sector. And UNIA lawyers will be able to improve the Ukrainian mortgage legislation. UNIA experts are successful in cooperating with professionals from the European Mortgage Federation, particularly, with its unit, European Covered Bond Council; Standard & Poor’s, Moody’s, and Fitch rating agencies; and representatives of the international investment community aimed at developing mortgage bonds as an effective and attractive investment instrument.

At the current stage, UNIA’s task in this regard is to promote Ukrainian mortgage bonds among foreign investors and familiarize the Ukrainian investment community with advantages and mechanisms of mortgage bonds. We see possible holding of the 10th Annual Central European Conference on Covered Bonds in Kyiv in October 2006 as one of the most interesting events in this area.