Ukraine’s Parliament has adopted legislation establishing a legal framework for securitization and covered bonds, the National Securities and Stock Market Commission reported. The final passage follows the recent strengthening of the bill and creates a new capital market segment intended to channel long-term investor funding into lending, housing, infrastructure, business and economic recovery while bringing Ukrainian rules closer to European Union standards. The framework allows cash flow generating assets, such as mortgages and other loans, to be pooled and financed through capital markets, enabling financial institutions to release resources for further lending. It provides for a specialized financial institution and segregation of assets supporting investor payments. Covered bonds will carry additional protection through a dedicated cover pool. The legislation also sets participant, risk management, disclosure and investor protection requirements and defines the respective regulatory and supervisory powers of the commission and the National Bank of Ukraine.