Moves towards harmonising Austria’s covered bonds under a single law were discussed at the first conference of the Österreichisches Pfandbrief und Covered Bond Forum on Friday, although a spokesperson for the recently established industry body told The Covered Bond Report that this would only happen after intermediary steps were taken.

According to DZ Bank covered bond analyst Michael Spies, representatives of the Austrian central bank (Oesterreichische Nationalbank) and the finance ministry said that the harmonisation of laws governing Austrian covered bonds would be on their agenda.

Martin Schweitzer, speaking on behalf of the Österreichisches Pfandbrief und Covered Bond Forum, told The Covered Bond Report that a single covered bond law was the ultimate outcome of work to improve the Austrian framework.

“We are heading towards one law,” he said. “But before that there will definitely be intermediary steps to further harmonise the existing ‘two-plus’ frameworks.

“There will be harmonisation in terms of transparency, in terms of further quality improvements.”

Austrian covered bonds are either Pfandbriefe issued under the Mortgage Banking Act, which in 2005 brought together the old Mortgage Banking Act and the Pfandbrief Law, or Fundierte Bankschuldverschreibungen. Erste Group Bank and UniCredit Bank Austria, for example, issue under the Mortgage Banking Act, while Kommunalkredit Austria and Bawag PSK issue Fundierte Bankschuldverschreibungen.

The Österreichisches Pfandbrief und Covered Bond Forum was launched in January by Austria’s leading covered bond issuers, representing Bawag PSK, Erste Group, Kommunalkredit Austria, Österreichische Volksbanken, Raiffeisen Bankengruppe, UniCredit Bank Austria, and Hypoverband.

Schweitzer said that the Forum would not only be working on legislative changes.

“It’s about transparency in the market, speaking with one voice, and being visible on the European stage,” he said.

It is also developing its website as a common portal for information on Austrian covered bonds.