22 November 2001

EP Committee adopted Proposal on Collateral Directive

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The Committee adopted the report by Fernando Perez Royo on financial colatteral arrangements (1st reading).
The commission proposal was subject to a number of amendments aimed at the target group of the directive. According to the rapporteur the current proposal excludes many companies from the scope of the directive, and in particular would exclude all small and medium enterprises from the benefit of the protection which the directive offers to collateral. Other amendments aimed to the question whether a collateral arrangement needs to be concluded in writing and signed, as the commission proposes. Another issue which has been raised is the question of whether to include so-called 'credit risk top-up collateral' in the scope of the proposal.
see draft report (part 1) and (part 2)

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