Division 2 Calculation of benchmarks

Let NL_m be the eligible net lending of a participant in calendar month m, calculated as the participant's gross flow of new eligible loans in that month less repayments of eligible loans, as defined in Annex II.

Denote by NLB the benchmark net lending for this participant. This is defined as follows:

NLB = min(NL_{Feb 2015} + NL_{March 2015} + … + NL_{Jan 2016},0)

This implies that if the participant has positive or zero eligible net lending in the first reference period, then NLB = 0. If, however, the participant has negative eligible net lending in the first reference period, then NLB = NL_{Feb 2015} + NL_{March 2015} + … + NL_{Jan 2016}.

Denote by OAB a participant's benchmark outstanding amount. This is defined as follows:

OAB = max(OL_{Jan 2016} + NLB,0)