A new French law could provide the basis for growth in French securitisation volumes, according to a report published today by Standard & Poor's Ratings Services.
The "Law on Financial Security" was enacted on 1 August 2003, although several provisions, including some pertaining to securitisation, are subject to ministerial decree, which is expected to be published by the end of 2003.
"Certain legal restrictions in the 1988 securitisation law on "fonds communs de creances" (FCCs) have contributed to France lying sixth in the European securitisation league tables," said Nicolas Malaterre, credit analyst at Standard & Poor's Structured Finance Ratings group in Paris. "Clearly, the size of the French securitisation market is not in line with the volume of assets that could be securitised."
