Are there any impending reforms in your jurisdiction which will make lending into your jurisdiction easier or harder for foreign lenders?
Lending & Secured Finance
As far as we know, there are no impending reforms in Croatia which will make lending easier or harder for foreign lenders.
According to our information, there are no attempts to implement such reforms.
No. However, Brexit may have an impact on lending from the UK.
No such reform plans are known.
No. See answer to question 2 above.
Lending money alone, without any additional banking activities (such as accepting deposits from the public) does not require the relevant lender to obtain an authorisation from the Spanish banking authorities.
In any case, additional banking activities (such as accepting deposits from the public), can only be carried out by certain credit entities (banks, savings banks) which need to be authorised by the Bank of Spain. Non-EU lenders shall apply for authorisation before the Bank of Spain in order to carry out banking activities in Spain, but this is not the case for EU lenders. The latter only require a notification to the Bank of Spain from the relevant supervisory authority of the EU member state.
However, note that there are two Spanish impending reforms that may affect foreign lenders on the date hereof:
- The Real Estate Credit Act (Ley reguladora de los contratos de crédito inmobiliario), which was passed, but still pending to be published in the Official State Gazette, transposes the European Directive (Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property) and seeks to enhance the transparency of mortgage contracts to be signed with individuals (customers). This law shall entry in force as of the date falling three months since the date it is published.
Article 42 of the Real Estate Credit Act provides mandatory registry for real estate lenders, unless they are credit entities, regulated entities (establecimiento financiero de crédito) or Spanish branches of credit entities.
- Law Decree no. 5/2019 on contingencies actions in event of no-deal Brexit (Real Decreto-ley 5/2019, de 1 de marzo, por el que se adoptan medidas de contingencia ante la retirada del Reino Unido de Gran Bretaña e Irlanda del Norte de la Unión Europea sin que se haya alcanzado el acuerdo previsto en el artículo 50 del Tratado de la Unión Europea.).
In relation to banking services, this law decree establishes that agreements entered into by legal entities with registered office in United Kingdom or Gibraltar and authorised by the relevant authority in United Kingdom or Gibraltar before Brexit shall keep being in force with the terms and conditions agreed. After Brexit, regulation for non-EU legal entities will apply to UK-based and Gibraltar-based legal entities.
However, regarding agreements entered into before Brexit, this law decree provides a nine-month transitional period, extending the validity of the authorisation granted to said entities in order to (i) terminate this agreements or (ii) apply for a new authorisation in Spain.
In any case, they must apply for the relevant authorisation in order to amend or extend the existing agreements or to enter into new agreements.
There are currently no impending reforms which can significantly affect lending by foreign lenders. Related pending regulations however, include:
The Guidelines on the Implementation of ASEAN Capital Markets Forum (ACMF) Pass. The SEC en banc has recently approved the Guidelines on the Implementation of ASEAN Capital Markets Forum (ACMF) Pass Under the ASEAN Capital Market Professional Mobility Framework. However, the Guidelines have yet to be formally signed by the SEC Chairperson to take effect.
The Promulgation of the Implementing Rules and Regulation of the PPS Act. The Department of Finance, in coordination with the Department of Justice and through the LRA has yet to promulgate the implementing rules and regulations of the PPS Act.
We are not aware of any such reforms.
Please see our response to Question 3.
After years of new regulations in response to the financial crisis of 2008, U.S. legislators and regulators appear focused on refining the reforms of the past decade. Federal regulators have recently deemphasized many of the limitations imposed by the “Guidance of Leveraged Lending” it issued in 2013. Similarly, proposed changes to the U.S. tax code would permit certain U.S. borrowers to receive additional credit support from their non-U.S. subsidiaries. Certain foreign lenders will benefit from the relaxation of regulatory requirements; others may find it difficult to compete in increasingly competitive U.S. lending markets.
This transition toward deregulation has not been completely one-sided. The U.S Federal Reserve is reportedly considering additional liquidity requirements for U.S. branches of foreign banks, and the Trump administration emphasized the use of sanctions throughout 2018. Although recent regulatory changes have been less dramatic than many expected, the impact of future changes may vary depending on the specifics of the borrower, lender and transaction at issue.
The Federal Council adopted the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA) entering into legal force on 1 January 2020. The FinSA and FinIA are meant to create a level playing field for financial intermediaries and enhance client protection. As a consequence, foreign financial service providers carrying out an activity which would require an authorisation in Switzerland will have to register in Switzerland, as a prerequisite to providing financial services to Swiss-based investors.
It is worth noting some law, e.g. as to choice of law and recognition of judgments may change and there are other areas of potential reform which may arise as a result of changes in UK legislation and regulation in preparation for or as a result of the UK's withdrawal from the European Union.
For instance, in the event of a “no deal” EU exit scenario, the government is considering plans to remove EU regulations from insolvency proceedings in the UK, by which the UK will not, automatically recognise EU insolvency proceedings and judgments.
Separately, a new all-company moratorium is being considered, by which companies that are not yet insolvent (but in financial difficulty) may apply for a 28-day moratorium.
The SIL which came into force on 2 January 2014 brought about wholesale changes to the way security is created in respect of intangible movable property in Jersey. Jersey continues to develop its products for use globally and the extension of the SIL regime to tangible movables remains a matter which is under consideration.
There is currently no proposal for legal reform which would significantly affect the areas covered in this questionnaire.
There are no impending reforms which will make lending into Austria easier or harder for foreign lenders.
However, Mexico's government is under a new administration as of December 2018 and the president's political party has a majority in federal Congress and most state congresses. This means that foreign lenders and investors should expect dynamic legislative action in the country in the short term and midterm. This means foreign lenders will have to seek legal advice constantly if they wish to do business in Mexico.
Bosnia & Herzegovina
Yes, on 6 March 2019 the Constitutional Court of FBH issued a judgement according to which requirement of notarization for mortgage agreements is not in line with the Constitution of FBH. The Parliament of FBH needs to adopt changes to the relevant laws within 6 months, and it is expected that the reforms will simplify securitization in the FBH.