The CRR definition of "“public sector entity" lists "has explicit guarantee arrangements" as one of the requirements, without further explaining or limiting this requirement. Does CRR require that all or the greater part of the entities liabilities feature an explicit guarantee by its owners or sponsor which the entity's creditors can call on? Or is "explicit guarantee arrangements" to be understood to also cover other explicit support arrangements like e.g. a guarantee on the entity's lendings for the benefit of the entity or a commitment by the owners/sponsors to guarantee the entity's ability to fulfil its obligations on its liabilities?
This is e.g. relevant for the eligibility of a company’s bonds as liquid asset (Category 2 a).
The company has a guarantee scheme for its assets, each member State is either directly liable for or guarantees the obligations of its railway under the equipment financing contracts. However there is no guarantee scheme for the company’s liabilities, i.e. a bond issued by the company does not benefit directly from explicit guarantees. Does the company qualify as public sector entity?
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