Do liabilities mentioned in Article 60(2)(b) only refer to the potential liabilities for damages of the national resolution authority to the holder of the relevant capital instrument or eligible liabilities as referred to in Article 59 BRRD?

Article 60 (2) (b) of Directive 2014/59/EU (BRRD), states that “Where the principal amount of a relevant capital instrument is written down […] b) […] liability for damages that may arise as a result of an appeal challenging the legality of the exercise of the written-down power” remains.

It is not completely clear to whom the stated liability refers to, e.g. only to the liability of the national resolution authority to the holder of the capital instrument or to every liability that could exist.

The term "liability for damages" in Article 60(2)(b) BRRD refers only to the resolution authority’s liabilities that may rise for any wrongful exercise of the write-down power, recognised in an appeal challenging the legality of such exercise, vis-à-vis the holder of the relevant capital instrument or eligible liability.

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