Division 18 FORBORNE EXPOSURES (19)F1

a modification of the terms and conditions of a contract that the debtor is considered unable to comply with due to his or her financial difficulties ( ‘ troubled debt ’ ) resulting in insufficient debt service ability, and where that modification would not have been granted had the debtor not been experiencing financial difficulties;

a total or partial refinancing of a troubled debt contract, where that refinancing would not have been granted had the debtor not been experiencing financial difficulties.

a difference in favour of the debtor between the modified terms of the contract and the pre-modified terms of the contract;

inclusion in a modified contract of more favourable terms than other debtors with a similar risk profile could have obtained from the same institution at the time of inclusion of those more favourable terms.

a modified contract that has been classified as non-performing before the modification or would in the absence of modification be classified as non-performing;

the modification that has been made to a contract involves a total or partial cancellation by write-offs of the debt;

the institution approves the use of embedded forbearance clauses for a debtor who is non-performing or who would be considered as non-performing without the use of those clauses;

simultaneously with or close in time to the concession of additional debt by the institution, the debtor made payments of principal or interest on another contract with the institution that was non-performing or would in the absence of refinancing be classified as non-performing.

the modified contract was totally or partially past due more than 30 days (without being non-performing) at least once during the three months prior to its modification or would be more than 30 days past due, totally or partially, without modification;

simultaneously with or close in time to the concession of additional debt by the institution, the debtor made payments of principal or interest on another contract with the institution that was totally or partially past due by 30 days at least once during the three months prior to its refinancing;

the institution approves the use of embedded forbearance clauses for 30 days past due debtors or debtors who would be 30 days past due without the exercise of those clauses.

the forborne exposure is considered to be performing, including where the exposure has been reclassified from the non-performing exposures category after an analysis of the financial condition of the debtor showed that it no longer met the conditions to be considered as non-performing;

a minimum two year period has passed from the date the forborne exposure was considered to be performing ( ‘ probation period ’ );

regular payments of more than an insignificant aggregate amount of principal or interest have been made during at least half of the probation period;

none of the exposures to the debtor is more than 30 days past due at the end of the probation period.

that extension has not led the exposure to be classified as non-performing;

the exposure was not considered to be a non-performing exposure at the date the forbearance measures were extended.

exposures which have become non-performing due to the application of forbearance measures;

exposures which were non-performing prior to the extension of forbearance measures;

forborne exposures which have been reclassified from the performing category, including exposures reclassified in application of paragraph 260.

exposures which are considered, in accordance with the applicable accounting framework, to be impaired. Under IFRS, the amount of credit-impaired assets (Stage 3), including purchased or originated credit-impaired assets reported in this stage in accordance with paragraph 77 of this Part shall be reported in this column;

exposures in respect of which a default is considered to have occurred in accordance with Article 178 CRR.