EIOPA · 1456

1456

Regulation
(EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article
180
Submitted
2019-02-04
Answered
2019-09-12
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Question

Do government-guaranteed bonds issued in a currency different than the domestic currency of the guarantor get assigned a credit stress risk factor of 0%?

Answer

Commission staff consider that the intention of the legislator in Article 180(2) of Commission Regulation 2015/35 is that the specific risk factor of 0% applicable to bonds guaranteed by Member States' central government is limited to exposures "denominated and funded in the domestic currency of that central government”. This interpretation is also consistent with the limitation of 0% risk factor for sovereign debt instruments to those instruments denominated and funded in the domestic currency of that central government in Article 180 (2).
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This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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