Securitization in Russia and Belarus: Legislation Analysis

The article presents a comparative analysis of normative legal acts of Russia and Belarus on the securitization of commercial organizations' assets in connection with the implementation of the new legislation on securitization in Russia, effective since 2014, and with the beginning of the securitization process in Belarus. The Republic of Belarus has just begun mastering the process of commercial organizations' assets securitization since 2018. Securitization in Belarus is considered as the financing of a commercial organization by a special financial organization under the rights (requirements) assignment at the expense of funds raised through the issuance of bonds or with their subsequent issuance. The development of the securitization mechanism in Russia began in 2005. Securitization in Russia is the financing or refinancing of legal entities' assets that generate income by increasing their liquidity through the issuance of securities (on the basis of contracts of sale, exchange, assignment, or another transaction of the asset). The market for securitization of mortgage assets has specifically developed in Russia as the country has introduced several housing construction development programs which are actively mastered by commercial banks. The analysis aimed to identify the possibility of improving and harmonizing the legislation of the two states, members of the Eurasian Economic Union States (EAEU), on securitization in order to ensure the integration of the two national markets in the emerging common financial market. Harmonization of legislation on securitization is considered in the context of the approximation of the laws of the two states which are members of the EAEU as a whole and of the establishment of similar (comparable) normative legal regulation in the sphere of the financial market. Similarities and differences in the legislation of Russia and Belarus on the basis of studying the current laws are highlighted. The issue of securitization of mortgage assets has been worked out in detail in the Russian legislation, which is not the case in the Belarusian normative legal acts. Issues related to securitization of non-mortgage assets are practically not considered in the laws of Russia and Belarus. A conclusion is made about the appropriateness of merging a large number of laws and regulations on securitization in Russia and in Belarus in one law - law on assets securitization, which will facilitate the operational implementation of securitization of various assets of commercial organizations and will foster harmonization of legislation of the two states, members of the EAEU.

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