EIOPA · 1958

Reporting Templates

Regulation
(EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article
35
Topic
Reporting Templates
Submitted
2019-02-01
Answered
2020-01-08

Question

The guidance does not mention Government agencies as valid issuer entities to classify an asset as Government bond (CIC ##1#). However, it seems to be a common industry practise to classify them as such any bond issued by a Government agency. Would classifying a bond as Government bond (CIC ##1#) be correct, when the issuer entity does not have an explicit Government guarantee?

Answer

Government agencies may receive different levels of support from the Government depending on the jurisdiction and the agency itself. Therefore, there is no general criteria applicable to all bonds issued by Government agencies and each case should be analysed independently. As a reminder, any bond, including those issued by Government agencies, will receive CIC 1 if they are “fully, unconditionally and irrevocably guaranteed by the European Central Bank, Member States' central government and central banks denominated and funded in the domestic currency of that central government and the central bank, multilateral development banks referred to in paragraph 2 of Article 117 of Regulation (EU) No 575/2013 or international organisations referred to in Article 118 of Regulation (EU) No 575/2013, where the guarantee meets the requirements set out in Article 215 of Delegated Regulation 2015/35.

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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