A number of developments occurred last year which will further enhance the depth and liquidity of European capital markets. The required notification to the European Commission is imminent. The bill for the introduction of a mortgage bond law is expected to pass in the summer of 2001. First issuance would then take place at the end of 2001. Initially, Irish mortgage bonds would be covered by public-sector loans only.
Agricultural activity is excluded from the new law.
The Italian Bankers Association has recently set up two working groups, one on mortgage bonds and the other on mortgage-backed securities . Although there are no results for the time being, there will probably be both types of instruments in the future. Since the introduction of the new mortgage bond law, two new mortgage banks were established. However, neither has yet started international activity. First issuance may take place next year.