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Act No. CXII/1996 on credit institutions and financial enterprises permits the setting up of a centralized domestic electronic database. The passing on and/or accessing of database information on debtors by financial institutions and investment companies does not constitute a violation of banking secrecy. However, this database should not contain information on natural persons. The Act was amended with effect from January 1 1998; it is now permissible to store and provide information on natural persons. The difference between data on private persons and data on non-private persons is that information on private persons is limited to a 'blacklist', ie only those debtors are recorded who have not met their obligations within 90 days of the due date. On the other hand, debtors who are non-private persons are always registered as soon as they conclude a loan or quasi-loan agreement, irrespective of whether they are in default of payment.

Article 22 of Legislative Decree No. 58 (through which a unified text of rules on the financial markets has been approved) sets out basic principles on the segregation of patrimonies of financial intermediaries and clients.

A new Russian bankruptcy law became effective on March 1 1998 (Federal Law No. 6-FZ On Bankruptcy). Given the difficulties being experienced by the Russian economy and the precarious state of many enterprises, the new law may assume growing importance in the reform process. Under previous legislation, bankruptcies proved difficult to implement and only infrequently resulted in the liquidation or material restructuring of troubled debtors. Key improvements in the new law include a revised and more practical definition of bankruptcy; a wider list of actors who may start bankruptcy proceedings; and new and more detailed procedures governing the activities of the courts, creditors and manager/trustees in connection with bankruptcy.

The proposed Council Directive on savings income was circulated by the European Commission on June 4 1998. Its rationale is the perceived scope for tax avoidance created by a lack of coordination of national systems for the taxation of interest payments on savings. It will also tax interest on public debt securities and bonds.

A possible amendment to the Act on Building Societies (Ustawa o kasach oszczednosciowo-budowlanych) seriously threatens the development of the newly established Polish building societies.

Orange, the UK mobile phone operator, has raised nearly US$1 billion with a high yield debt issue, the largest-ever by a European company. The US$996 million high yield debt was issued in Euros, American dollars and sterling. Advising Orange is London firm Linklaters & Paines. The partners assisting are Brigid Rentoul (corporate) and Tom Wells (international finance).

US drugs company Johnson & Johnson is buying orthopaedic supplies company DePuy for US$3.5 billion. Roche Holding, the Swiss pharmaceutical company, is selling its 84% stake in DePuy to the company. Cravath Swaine & Moore is representing Johnson & Johnson of New Jersey. The team of lawyers includes partners Robert Kindler (corporate), Robert Townsend (corporate) and Stephen Gordon (tax).

Hampered by a small domestic market, Danish firms are probably as big as they can get, and there is little scope to open overseas. But firms are thinking of links with firms abroad. Barbara Galli reports

The four firms which traditionally dominate the Norwegian market are maintaining their strong position, but new players are ready to enter the arena. The legal markets of the Baltic States continue to develop. Barbara Galli reports

In the last of three articles considering possible changes to bond documentation to ease debt problems, Lee C Buchheit of Cleary, Gottlieb, Steen & Hamilton, New York, considers collective representation clauses