How to determine when an exposure is past due? In Legal acts there are two different explanations. 1. According to Annex V. Part 2, paragraph 48 Assets qualify as past due when counterparties have failed to make a payment when contractually due. It is understood that any overdue payment shall be taken into account (including penalties). 2. According to EBA/ITS/2013/03/rev1, paragraph 150 For the purpose of template 18, an exposure is “past-due” when any amount of principal, interest or fee has not been paid at the date it was due (excluding penalties).
It is unclear what is the right method of how to determine the past due exposures. Penalties should be taken into account in determining past due exposures?
Penalties are not excluded from paragraph 96 of Annex V (reporting framework v2.8) of Regulation (EU) No 680/2014 – ITS on Supervisory Reporting of institutions (ITS on reporting) and therefore shall be taken into account when assessing the past-due status.