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Tender: Development of Legal and Regulatory Framework for Covered Bonds

Zagreb, Croatia, 29 April 2015


The covered bond is at the heart of the financial tradition of Continental Europe, playing a central role in funding strategies for the last two centuries. However, following the 2008 financial crisis and the discredit such crisis shed over mortgage/asset backed securities, the strategic importance of covered bonds as a long-term funding tool has been recognised at the global level. Covered bonds are playing an important role in the capital markets, contributing to the efficient allocation of capital and, ultimately, economic development and recovery.

As a consequence, many European countries have introduced new covered bond legislation or have updated or are in the process of updating the existing rules.

Croatian regulators, namely the Ministry of Finance, Croatian National Bank and the Croatian Financial Services Supervisory Agency are eager to work on the diversification of access to finance of the local banking institutions and revival of the local capital markets and on these lines will undertake a legal reform project aimed at introducing covered bonds legislation in Croatia.

The purpose of introducing the new law is to encourage the diversification of funding of local banks and to support further development of capital markets by enabling issuance of covered bonds through creating a stable, certain and predictable specific legal framework.

The Bank now intends to engage the services of a Croatian law firm (the "Local Legal Consultant" or "Consultant") to work in conjunction with an international covered bonds expert (the "International Consultant") to support the work of the MoF in developing a covered bonds legal and regulatory framework (the "Assignment").

The main objective of the Assignment is to reform the covered bond sector policy in Croatia by introducing a law which will allow issuing covered bonds in accordance with the best international practices.

The selected Local Legal Consultant is expected to provide the following services:

  • Prepare, draft, revise and present together with the International Consultant a legal concept paper containing proposed solutions, underlying reasons and examples that will serve as the basis for the development of the Croatian covered bond legal and regulatory framework (the Concept Paper). 

  • Contribute to the Ministry of Finance’s work by presenting the Concept Paper, discussing solutions, answering all questions that may be raised and providing additional comparative information which may be required; 

  • Make himself/herself available for meetings in Zagreb or in the region when requested and actively participate and propose improvements / modifications of the draft legal texts necessary to accomplish desirable effects as proposed in the Concept Paper;

  • Draft the Covered Bond Law in accordance with the ideas developed in the Concept Paper and the potential instructions / suggestions of the Ministry of Finance, Croatian National Bank and the working group; 

  • Draft in co-operation with the proposed regulatory body the relevant secondary legislation / regulation to implement and complement the new legal provisions;

  • Participate in capacity building and training events that might be organised in Croatia.


Submission Deadline: 9 May 2015

Also view the ECN Procurement Notice (accessible by ECN Executive Members - Login to View)

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