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ARTICLE · 19 MAY 2020

Turkish Regulator Eases Covered Bond Issuance For Mortgage Finance Institutions

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In the framework of the precautions announced in the 11th Development Plan for the term 2019-2023 and 2020 Presidency Annual Programme, Capital Markets Board of Turkey...

TurkeyFinance and Banking
Serra Sadik Hiziroglu
Serra Sadik Hiziroglu
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In the framework of the precautions announced in the 11th Development Plan for the term 2019-2023 and 2020 Presidency Annual Programme, Capital Markets Board of Turkey ("CMB") published the Communiqué No. III-59.1.ç, Amending the Communiqué on Covered Bonds No. III-59.1 ("Communiqué"), in the Official Gazette dated 14 May 2020 and numbered 31127 ("Amendment Communiqué"). With the Amendment Communiqué, Turkish regulator aims to encourage the issue of covered bonds by mortgage financial institutions ("MFI") by way of providing specific benefits to MFIs. This is in fact a financial measure taken in response to Covid-19 outbreak and main idea is to fund the economy by way of supporting the covered bonds market in Turkey.

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