Minimum loss coverage of non-performing exposures under Article 469a, subparagraph 2 CRR

When does a transaction that falls under the provisions on the minimum loss coverage of non-performing exposures under Article 469a, subparagraph 2 CRR become non-performing within the meaning of Articles 47a to 47c CRR? From the day on which the risk position increases due to a forbearance measure (e.g. 01.06.2019) or from the day on which the risk position actually became non-performing (e.g. 01.12.2018)?

• Article 469a, as entitled, refers to non-performing exposures • Paragraph 1 of Article 469a states that for risk positions which became non-performing before 26 April 2019, any shortfall in minimum loss coverage need not be deducted from the CET1 capital.   In other words, risk positions that became non-performing before 26 April 2019 do not fall under the provisions of EU Regulation 2019/630 (Article 47a to 47c CRR). • Article 469a subparagraph 2 concerns risk positions which became non-performing before 26.04.2019 and were contractually modified by a so-called forbearance measure in such a way that the risk position vis-à-vis the debtor is increased through the disbursement of fresh money. As a result of the contractual adjustment, the claim is newly justified as a non-performing claim / risk position (see also recital 8 of EU Regulation 2019/630) and is therefore no longer covered by subparagraph 1. In other words, the assessment of whether this non-performing risk position falls under the provisions of article 47a to 47c CRR is no longer based on when it became non-performing (e.g. 1 December 2018), but on the time at which the contract was amended (e.g. 1 June 2019).