What does the term “principal amount” as referred to in Articles 43 to 63 of Directive 2014/59/EU (BRRD) refer to?
In many articles, especially amongst Articles 43-60 BRRD we notice a reference to “principal amount” such as the case is in article 43 para.2b “principal amount of claims” or “principal amount of or outstanding amount of eligible liabilities” in art. 63 para 1e. Could you clarify what is the meaning of “principal’ and the difference with “outstanding amount” as it appears in the accounts of the institutions?
'Principal amount' refers to the original amount (or part of the amount originally) borrowed/owed, whereas 'outstanding amounts’ may include other elements, such as accrued interest on the principal amount up to the date when resolution is triggered.
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