Annex V Part 2 §244 F 26.00 c0010, c0040, c0070
For the purposes of Annexes III and IV as well as this Annex, ‘refinancing’ shall mean the use of debt contracts to ensure the total or partial payment of other debt contracts the terms of which the debtor is unable to comply with.
Annex V Part 2 §245 F 26.00 c0010, c0040, c0070
For the purpose of template 19, ‘debtor’ means an obligor within the meaning of Article 47b(4) CRR.
Annex V Part 2 §252 F 26.00 c0010, c0040, c0070
Exposures shall be regarded as forborne where a concession has been made in accordance with Article 47b(1) CRR, irrespective of whether any amount is past due or of the classification of the exposures as impaired in accordance with the applicable accounting framework or as defaulted in accordance with Article 178 CRR. Exposures shall not be treated as forborne where the debtor is not in financial difficulties. Under IFRS, modified financial assets (IFRS 9.5.4.3 and Appendix A) shall be treated as forborne where a concession as defined in Article 47b(1) CRR has been made, regardless of the incidence of the modification on the change in the credit risk of the financial asset since initial recognition.
Annex V Part 2 §254 F 26.00 c0010, c0040, c0070
There is a rebuttable presumption that forbearance has taken place in any of the circumstances listed in Article 47b(3) CRR.
Annex V Part 2 §255 F 26.00 c0010, c0040, c0070
Financial difficulties shall be assessed at debtor level as referred to in paragraph 245. Only exposures to which forbearance measures have been applied shall be identified as forborne exposures.
Annex V Part 2 §256 F 26.00 c0010, c0020, c0040, c0050, c0070, c0080
Forborne exposures shall be included in the non-performing exposures category or the performing exposures category in accordance with paragraphs 213 to 239 and 260 of this Part. The classification as forborne exposure shall be discontinued where all of the conditions provided in Article 47a(7) CRR are met.
Annex V Part 2 §257 F 26.00 c0010, c0040, c0070
Where the conditions referred to in Article 47a(7) CRR are not met at the end of the probation period, the exposure shall continue to be identified as performing forborne under probation until all the conditions are met. The conditions shall be assessed at least on a quarterly basis.
Annex V Part 2 §259 F 26.00 c0020, c0050, c0080
A forborne exposure may be considered as performing from the date the forbearance measures were applied where both of the following conditions are met:
(a) that extension has not led the exposure to be classified as non-performing;
(b) the exposure was not considered to be a non-performing exposure at the date the forbearance measures were extended.
Annex V Part 2 §260 F 26.00 c0020, c0050, c0080
Where additional forbearance measures are applied to a performing forborne exposure under probation that has been reclassified out of non-performing category or the forborne exposure under probation reclassified out of non-performing category becomes more than 30 days past due, the exposure shall be classified as non-performing in accordance with point (c) of Article 47a(3) CRR.
Annex V Part 2 §261 F 26.00 c0020, c0050, c0080
‘Performing exposures with forbearance measures’ (performing forborne exposures) shall comprise forborne exposures that do not meet the criteria to be considered as non-performing and that are included in the performing exposures category. Performing forborne exposures shall be under probation until all the criteria laid down in Article 47a(7) CRR, including where paragraph 259 of this Part applies, are met. Performing forborne exposures under probation that have been reclassified out of the non-performing forborne exposures category shall be reported separately within the performing exposures with forbearance measures in the column ‘of which: Performing forborne exposures under probation reclassified from non-performing’.
Annex V Part 2 §355 F 26.00 r0020
Template 26 shall include detailed information on loans and advances classified as forborne in accordance with paragraphs 240 to 268 of this Part, excluding instruments classified as cash balances at central banks and other demand deposits or as held for sale. Forborne exposures referring to either a modification of the previous terms and conditions or a total or partial refinancing of a troubled debt contract as defined in paragraph 241 of this Part shall be broken-down in more specific types of forbearance measures.
Annex V Part 2 §357 F 26.00 r0020
The gross carrying amount of exposures with forbearance measures shall be allocated to a category reflecting the type of forbearance measure. Where multiple forbearance measures have been applied to an exposure, the gross carrying amount of exposures with forbearance measures shall be allocated to the most relevant type of forbearance measure. The latter shall be identified based on the type of forbearance measure which has the highest impact on the Net Present Value (NPV) of the forborne exposure or by using any other methods considered applicable.
Annex V Part 2 §358 F 26.00 r0030, r0040, r0050, r0060, r0070, r0080, r0090
The types of forbearance measures shall be the following:
(a) grace period/payment moratorium: temporary suspension of repayment obligations with regard to the principal or the interest, with repayments to be resumed at a later point in time;
(b) interest rate reduction: permanent or temporary reduction of the interest rate (fixed or variable) to a fair and sustainable rate;
(c) extension of maturity/term: extension of the maturity of the exposure, entailing a reduction in instalment amounts by spreading the repayments over a longer period;
(d) rescheduled payments: adjustment of the contractual repayment schedule with or without changes to instalment amounts, other than grace periods/payment moratorium, extension of maturity/term and debt forgiveness. That category shall include, among others, capitalisation of arrears and/or accrued interest arrears to the outstanding principal balance for repayment under a sustainable, rescheduled programme; decrease of the amount of principal repayment instalments over a defined period, regardless of whether interests remain to be paid in full or whether they are capitalised or forfeited;
(e) debt forgiveness: partial cancellation of the exposure by the reporting institution through forfeiture of right to legally recover it;
(f) debt asset swaps: partial replacement of exposures in the form of debt instruments with assets or equity;
(g) other forbearance measures, including among others, total or partial refinancing of a troubled debt contract.
Annex V Part 2 §359 F 26.00 r0020
Where the forbearance measure affects the gross carrying amount of an exposure, the gross carrying amount at the reference date, i.e. after application of the forbearance measure, shall be reported. In the case of refinancing, the gross carrying amount of the new contract (“refinancing debt”) granted which qualifies as a forbearance measure, as well as the gross carrying amount of the old re-paid contract that is still outstanding shall be reported.
Annex V Part 2 §361 F 26.00 c0030, c0060, c0090
Exposures to which forbearance measures have been granted since the end of the last financial year shall be reported in separate columns.