29 April 2020
Brussels, 29 April 2020 – For immediate release
The European Mortgage Federation-European Covered Bond Council (EMF-ECBC) is pleased to announce the publication of its first contribution to the EU’s Joint Roadmap for Recovery, as developed by the special EMF-ECBC COVID-19 Task Force.
At a time when the European Commission is also focussing its efforts on facilitating lending to households and businesses in the EU, as evidenced in yesterday’s announcement by European Commission Vice-President Valdis Dombrovskis of a banking package, the EMF-ECBC’s first contribution in this context outlines how Europe’s mortgage and covered bond industries can support socio-economic recovery and secure financial stability.
The EMF-ECBC’s contribution focuses on how long-term financial instruments will be of particular help in supporting the recovery, in full alignment with the Capital Markets Union and Banking Union. In this respect, the EMF-ECBC highlights covered bonds as one of the safest and most successful long-term financing instruments which can support the recovery through the financing of not only mortgages, but also public sector assets, such as exposures to the real economy guaranteed by central or regional governments, including loans for infrastructure and healthcare. These instruments allow for the mobilisation of long-term private investors, alleviating public budgets. Moreover, with a focus on maintaining the financing of Europe’s businesses, in particular SMEs, the EMF-ECBC also highlights its work on a market initiative to create a new pan-European dual-recourse funding instrument, European Secured Notes (ESN).
Last but by no means least, the EMF-ECBC has launched an Energy Efficient Mortgage Label, a market initiative aimed at providing a clear and transparent quality benchmark for consumers, lenders and investors which has the potential to help ensure that Europe’s recovery is ‘green’. This is fully in line with the calls from EU heads of state, MEPs and market stakeholders for a comprehensive plan which integrates the green transition into the economic recovery.
Commenting on this first contribution, Luca Bertalot, EMF-ECBC Secretary General said:
“Only solid market and institutional coordination can secure a real renaissance of the European economy. By working together, we can turn this unprecedented crisis into the foundation upon which to build a safer, fairer and greener place to live for future generations”.