Scope for probation period

The two years’ probation period is applicable to all forborne exposures, irrespective of whether they were classified as performing or non-performing when the forbearance measures were granted:a) The probation period applicable to a performing exposure that was not classified as non-performing at the date the forbearance measure was extended or for which the forbearance measures have not led the exposure to be classified as non-performing begins at the date the forbearance measure was granted (paragraph 177);b) The probation period of a non-performing forborne exposure begins the day the exposure is qualified as performing (paragraph 176).The rules for non-performing forborne exposures in b) above are applied to performing forborne exposures reclassified out of the non-performing category (paragraph 176) and to forborne exposures reclassified as non-performing in application of paragraph 179, as the application of paragraph 179 interrupts the probation period of a performing forborne exposure (the scope of application of paragraph 179 is further specified in Q&A 2014_736). Although the probation period applies to all forborne exposures, according to paragraph 180 of Annex V of Regulation (EU) No 680/2014 – ITS on Supervisory Reporting of institutions (ITS), only those performing forborne exposures reclassified from the non-performing category and which are in the probation period (exposures under point b) above) shall be reported in column 050 of F 19.00. The content of column 050 of F 19.00 is further specified in Q&A 2014_736.