Refinancing

In case an exposure is derecognised as part of the forbearance measures, paragraph 266 of Annex V to Regulation (EU) no 680/2014 (ITS on Reporting) clarifies that derecognition does not interrupt the reporting of forbearance: the newly recognised exposure has to be reported as forborne, until all the exit criteria of forbearance are not met in accordance with paragraph 256. In the specific situation of repayment by a customer, repayment of the forborne exposure via the customer’s own means (for instance an inheritance) should interrupt the reporting of the exposure as forborne. Alternatively, if repayment of a previously forborne exposure is made through another loan granted by the institution and the concession of the new loan qualifies as refinancing according to paragraphs 244, the new loan granted by the institution shall be considered as a forborne measure  and the minimum 2 year probation period as per paragraph 256 (b) will be computed starting from the date of the new concession.