To this effect, the recently legislated semi-autonomous tax agency will need to become fully operational and be shielded from political interference. Beyond that, accelerating the implementation of public administration reform is key to the success of the wider reform agenda.
The credit risk stays with the originator, preserving the incentives for prudent credit risk evaluation and monitoring. We could thus say that covered bonds are incentive compatible while many asset-backed securities were not, at least in the way the concept was implemented before the crisis.