On Thursday 24 May, the European Commission unveiled a proposal aiming to support the emergence of a market for sovereign bond-backed securities (SBBS) issued by Eurozone countries (see EUROPE 12022).
This proposal aims to reduce financial risks in the banking system by supporting the diversification of investments in sovereign debt instruments, explained the Commissioner for Financial Services, Valdis Dombrovskis. He stressed the following clarifications: the proposal will not entail any...