Question ID
2015_1879
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - FINREP (incl. FB&NPE)
Article
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Annex V, Part 2, paragraphs 167 and 182
Type of submitter
Competent authority
Subject matter
Definition of "Refinancing" for the purpose of reporting in columns 040, 080 and 160 of template F 19.00
Question

What is the appropriate definition of "Refinancing" for the purpose of reporting in columns 040, 080 and 160 of template F 19.00?

Background on the question

In accordance with paragraph 167 of Annex V, ‘Refinancing’ means the use of debt contracts to ensure the total or partial payment of other debt contracts the current terms of which the debtor is unable to comply with. It is not clear, what are differences between "refinancing" and "modification".

Submission date
Final publishing date
Final answer

Refinancing, as defined in Annex V Part 2.244, ‘Refinancing’ shall mean the use of debt contracts to ensure the total or partial payment of other debt contracts the current terms of which the debtor is unable to comply with.


On the other hand, a modification is defined in Annex V Part 2.241 as “a modification of the previous terms and conditions of a contract that the debtor is considered unable to comply with due to its financial difficulties (‘troubled debt’) resulting in insufficient debt service ability and that would not have been granted had the debtor not been experiencing financial difficulties;”


Therefore, concessions that do not involve the issuance of additional debt contracts to repay old contracts shall be classified as a modification.


Similarly, as per Annex V 2.266, a repackaging of several debts into a new debt shall be reported as a modification, unless there is also a refinancing transaction that has a larger impact on cash-flows.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

Disclaimer

The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.