Regulatory Alerts2021-11-05
Law on the Issue of Covered Bonds and Covered Bond Public Supervision and Related Matters of 2021
The House of Representatives of the Republic of Cyprus enacted this Law to establish a framework for the issuance and public supervision of covered bonds, aligning with EU Directive 2019/2162 and safeguarding investor rights. It defines the structural features of covered bonds, including dual recourse, insolvency protection, eligible cover assets, and liquidity requirements, while mandating the maintenance of a covered pool register and the appointment of a monitor. The Law also details the Central Bank's public supervision role, procedures for approving credit institutions and registering covered bonds, and specific provisions for the liquidation, reorganization, or assumption of covered bond liabilities in cases of issuer insolvency or resolution.