Commitment received to upgrade collateral from Level 2B to Level 1

In accordance with Article 32(3)(g) of Delegated Regulation (EU) 2015/61 as amended by Delegated Regulation (EU) 2018/1620 (hereinafter ‘LCR DR’), commitments received, other than those referred to in the second subparagraph of Article 31(9) LCR DR and in Article 34 LCR DR, shall not be taken into account as an inflow.   In case the commitment has already been exercised at the reporting reference date, thus effectively constituting a forward contract contractually becoming effective within 30 calendar days, and the conditions according to section 1.3. paragraph 20 of the instructions on liquidity inflows (Part 3) of Annex XXV of Implementing Regulation (EU) 2021/451 are fulfilled (i.e., in particular that the return of the assets is beyond the 30 calendar day time horizon), the credit institution should consider an inflow according to the net effect of the initial swap of assets (i.e., taking into account LCR haircuts) which would need to be reported under {C 74.00, r260}.