Belgian covered bond legislation has entered the formal political law-making process after a final draft was sent to the ministry of finance earlier this month, according to a banker familiar with the initiative.

Belgium’s central bank has sent a final draft law and a royal decree to the ministry, with the draft law forwarded to the ministerial administration on 10 January, the banker told The Covered Bond Report.

He said that the country’s banking association, Febelfin, separately sent to the ministry a draft law setting out amendments of existing law that does not concern banking legislation, which is the focus of the National Bank of Belgium (NBB).

“It is out of the hands of the banks and regulators and in the political process,” he said, adding that he did not know how long this process will take.

“The new government has a lot of projects, but it is being processed,” he said.