The New Romanian Legal Framework on Covered Bonds

In this article the authors provide an useful insight regarding the legal aspects of covered bonds, taking into consideration the Romanian legal framework (e.g. primary and secondary legal sources). Furthermore, there are identified legal gaps, as well as possible risks related to covered bonds issuance and there are proposed legal and economic solutions in order to improve the legislation and to mitigate the risks. The improvement of the legal framework undertook by the Romanian authorities in 2006 included “the securitisation package” which comprises the Law no. 32/2006 on Covered Bonds, the Law no. 31/2006 on Securitisation of Receivables and the Law no. 33/2006 regulating the Mortgage Banks (repealed by the GEO No. 99/2006 on Credit Institutions and Capital Adequacy)