April 3, 2019 / 2:05 PM / 6 months ago

Italy to amend securitisation rules to spur property sales-draft bill

ROME/MILAN, April 3 (Reuters) - Italy plans to introduce changes to its securitisation law in an effort to promote sales of real estate assets, a draft bill seen by Reuters showed on Wednesday.

Completing new rules on real estate securitisations introduced earlier this year, the draft bill said properties used as collateral for asset-backed securities (ABS) would be shielded from creditors other than the holders of the ABS notes.

The rules aim to extend to the private sector a scheme used with partial success by the Italian state in the early 2000s to sell thousands of public properties.

In a securitisation deal, revenues expected from asset disposals are front-loaded by a vehicle that raises money on the market by issuing asset-backed notes and then repays investors who bought them as the assets get sold.

To spur real estate transactions, the draft bill also introduced a fixed-tax regime for real estate vehicles used in securitisation deals, the document showed.

Reuters reported earlier this month that the draft bill also aimed to ease sales of so-called ‘unlikely-to-pay’ (UTP) bank loans by allowing lenders to transfer financing commitments to UTP borrowers whose debt was being sold. (Reporting by Giuseppe Fonte and Valentina Za; editing by Agnieszka Flak)

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