The Bill (Reg. No. 2123), the Explanatory Note says, purports to increase financial resources directed towards lowering the cost of mortgage borrowing and easier access to such loans by the population, minimization of initial deposits by the borrowers, and an extension of loan terms.
The Sponsors of this Bill feel that the introduction of these amendments will ‘enable retirement funds, insurance companies, and the Natural Persons Deposits Guarantee Fund, to deposit their reserves into bonds of the State Mortgage Institution, for which a State guarantee has been issued.
The Bill also envisages the exclusive right of the State Mortgage Institution to independently manage mortgage bonds coverage assets for the bonds issued by it, without holding any licence from the Mortgage Indemnity Office.