However, similar legislation has been introduced in several European countries, and mortgage bonds regulated according to this legislation on secured bonds have come in various ways to be viewed as more creditworthy than mortgage bonds that are not. It can therefore be claimed that Swedish mortgage institutions should be given the same opportunities to issue secured bonds as mortgage institutions in other countries, which is also the view held by the Riksbank. Swedish mortgage institutions today already observe such strict legislation that they can be viewed as a kind of special company in a securitisation. The potential effects of introducing particular legislation for secured bonds are therefore possibly less in Sweden than in other countries, and it is difficult to see that the legislation regarding secured bonds would entail any dramatic change in the activities of Swedish mortgage institutions. However, there are advantages involved in introducing such legislation. Having legislation that is in line with that of other European countries will contribute to reducing any uncertainty, particularly from foreign investors, regarding the terms connected with owning securities issued by Swedish mortgage institutions. This should reasonably result in a broader circle of investors that are willing to invest in securities issued by Swedish mortgage institutions, and hopefully also  BIS Review 35/2004  1  reduce their borrowing costs. In addition, European central banks currently regard this type of mortgage bond as more creditworthy than mortgage bonds not covered by legislation on secured bonds, when market participants pledge collateral with them.

I want to commend WAIFEM for this initiative which has become an important platform for policy dialogue between the two arms of government and more importantly, strengthening the capacity of the parliaments in the vital areas of economic and financial management. It is in the realization of the useful role of such platforms in forging greater understanding among key stakeholders in the policy process that the Committee of Governors of Central Banks of ECOWAS member countries called for the reactivation of the periodic Consultative Forum of Ministers of Finance and Central Bank Governors of ECOWAS countries at its meeting in Dakar, Senegal on June 16, 2004. Looking at the pertinent issues to be dealt with in the course of your deliberations and the calibre of resource persons to facilitate the process, I have no reason to doubt that you are in for a round of stimulating and fruitful deliberations. Permit me therefore, to anticipate that you will come up with concrete and implementable proposals to facilitate a harmonious working relationship between the legislature and the executive in pursuance of their shared economic management objective. Towards regional monetary integration This has become particularly urgent in the light of the need to ensure that West African countries stay the course in their commitment to achieve economic convergence. But as you are aware, virtually all the countries have found it difficult to achieve and sustain, over time, the required level of economic performance under the convergence criteria.