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Securitisation in Russia : ways to expand markets and reduce borrowing costs (Russian)

This paper states that the development of the securitization market over the last decades has had a significant effect on the world's capital markets. By introducing a new class of debt instruments, and allowing access to new participants to the market, it has expanded and deepened the world's capital market. The ability of Russian market participants to successfully effect securitization transactions largely depends on whether Russian law allows them to implement a number of key concepts and use instruments and mechanisms which are typical of such transactions. There are three principal types of securitization: true sale, synthetic and "whole business". This Position Paper contains analysis of, and proposals to amend, only those legislative provisions that are applicable to classic true sale securitization transactions. The main part of the Position Paper clarifies and analyses in detail the concepts of "true sale", bankruptcy remoteness and limited purpose of an entity, subordination arrangements and priority of payments, the mechanism for identifying, transferring and segregating assets, secured bonds, mechanisms of credit and liquidity enhancement and instruments of hedging financial risks both in the context of international practice and within the context of current Russian legislation. It also contains recommendations and comments on proposed amendments to Russian legislation to ensure use of such concepts, mechanisms and instruments by market participants in full to effect securitization transactions. Part I of this paper contains a general description of securitization, and why it is important to Russia. Part II sets out in more detail the technical aspects of securitization. Part III sets out proposed amendments to Russian law to facilitate securitization transactions in the Russian Federation. In Annex 1, existing securitization laws of France, Italy, Spain, Greece, Portugal and Poland are summarized. Annex 2 contains a chart summarizing the Group's proposals on amending Russian law.

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Securitisation in Russia : ways to expand markets and reduce borrowing costs (Russian). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/783261468096247816/Securitisation-in-Russia-ways-to-expand-markets-and-reduce-borrowing-costs