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Integrated solutions for securitization services

The Law of 22 March 2004, as amended (“the Securitization Law”), sets out a comprehensive and flexible legal, regulatory, and fiscal framework to encourage securitization business in Luxembourg. The Securitization Law was devised to facilitate capital market transactions and/or intra-group transactions, or a combination of both, but can also be used in the context of restructuring.

Aside from the obvious benefits associated with freeing up the regulatory capital that must be set aside by banks, securitization can act as a catalyst for additional lending to the real economy. Transferring the risk of some loans to other banks or long- term investors such as pension funds and insurance companies generates new lending capacity. This is crucial for the European economy, since banks are then free to extend new loans to households and businesses—in particular, small and medium-sized enterprises.

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