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Mortgage banks were an important part of the Hungarian banking system until World War II. After a long break during the socialist era, mortgage banks have now been reintroduced in Hungary through Law No. XXX of 1997, which took effect on June 7 1997.

The changeover to the Euro will have a substantial impact on European price sources. The Fibor (Frankfurt Interbank Offered Rate), for example, will vanish from January 1 1999. On that date, one to 12 month Fibor rates will be replaced by one to 12 month Euribor rates (Euro Interbank Offered Rate), and the Fibor overnight rate will be replaced by the Eonia rate (Euro Overnight Index Average). Euribor and Eonia rates will be calculated on a daily basis using quotes from a maximum of 64 European banks, 12 of which are domiciled in Germany.

In a recent judgement, the Dubai Court of Cassation gave a narrow interpretation to the obligations resulting from a personal guarantee of a revolving credit facility.

To promote Singapore as a centre for international capital fundraising, the government-appointed Corporate Finance Committee has proposed a radical new regulatory regime in a consultative paper, shifting the emphasis to a predominantly disclosure-based philosophy of regulation, similar to the US system. Key points include:

The invitation to bid for the state telecoms companies was made available to the public on June 12 1998. For the auction, set for July 29 1998, the companies have been re-structured into three groups:

The China International Economic and Trade Arbitration Commission (CIETAC) has recently become one of the busiest arbitration bodies in the world, having decided about 800 cases in 1997. Effective as of May 10 1998, the CIETAC Arbitration Rules were revised in response to political and legal developments as well as criticism concerning uncertainties under the previous CIETAC Arbitration Rules.

Travelers Group, the US financial services group, has announced it is acquiring a 25% equity stake for US$1.6 billion in Nikko Securities, Japan's third largest broker. Nikko is also to conclude a joint venture with Travelers' investment banking arm, Salomon Smith Barney. The joint venture will be owned 51% by Nikko and 49% by Salomon Smith Barney. US firm Davis Polk & Wardwell is acting for Nikko. The team includes corporate partners Danfort Townley (Tokyo), Robert Levine (New York) and Jordan Luke (Washington), and counsel Theodore Paradise (Tokyo).

The Swiss-American investment bank Credit Suisse First Boston is buying São Paulo bank Banco Garantia. New York firms Cleary, Gottlieb, Steen & Hamilton and Shearman & Sterling are advising on the US$675 million deal. Cleary Gottlieb is representing CSFB with a team headed by M&A and securities partners Peter Darrow and James Munsell.

With projects often needing amendments or waivers from financiers, the use of project agents instead of trustees has been suggested for project bonds. Richard Forster reports

The Italian Treasury has announced the sale of one billion shares, valued at L12,000 billion (US$6.68 million) in Eni, the oil and gas conglomerate. IMI and Credit Suisse First Boston, which had already worked on the sale of the third tranche, are acting as global coordinators. With the disbursment of the bonus shares — one for every 10 shares after 12 months — and exercise of the over-allotment option, the Treasury's holding in Eni could go down from 51% to 35%. US firm, Sullivan & Cromwell is representing Eni with corporate finance partner Richard Morrissey leading the team from New York.