Regulatory Alerts2024-12-18
Law No. ............./ PR. Establishing the Legislative Framework for Covered Bonds
The Presidency of the Republic of Mauritania has enacted legislation establishing the comprehensive legislative framework for covered bonds issued by authorized credit institutions. The law mandates prior Central Bank authorization, strict cover pool composition limits (including maximum loan-to-value ratios and substitute asset caps), mandatory cash flow planning, and continuous independent pool controller oversight to ensure collateral quality and regulatory compliance. It guarantees investors double recourse to both the issuer and the cover pool, legally ring-fences cover assets from other creditors, and establishes a dedicated pool manager regime to ensure orderly repayment during provisional administration or judicial liquidation proceedings.