Regulatory Alerts2023-01-25
Law of Georgia on Mortgage Covered Bonds
The Georgian Parliament issued this law to establish a regulated market for mortgage covered bonds, tasking the National Bank of Georgia with supervisory oversight. The legislation requires commercial banks to secure authorization and maintain segregated cover pools consisting of eligible mortgage loans, substitute assets, and approved derivatives. It imposes strict prudential controls, including capped loan-to-value ratios, mandatory overcollateralization, and ongoing liquidity and disclosure obligations to safeguard program creditors.
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