Regulatory Alerts2022-05-30
Order on Valuation of Pledges and Loans in Ships Securing Covered Bonds and Ship Credit Bonds
The Danish Financial Supervisory Authority issues this order to regulate the valuation of ship pledges and loans securing covered bonds and ship credit bonds under the Ship Financing Institute Act. It mandates that valuations reflect market value within a 12-month horizon, requires independent professional assessment, and limits loan-to-value ratios to 60 percent with specific maturity constraints. The regulation further establishes strict rules for ongoing monitoring, construction loan guarantees, documentation, and insurance to ensure financial stability and compliance with EU directives.
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