Division 266 F1

Forborne exposures combining modifications and refinancing shall be allocated to the column ‘ Instruments with modifications of the terms and conditions ’ or the column ‘ Refinancing ’ , depending on the measure that has the most impact on cash flows. Refinancing by a pool of banks shall be reported in the column ‘ Refinancing ’ for the total amount of refinancing debt provided by or refinanced debt still outstanding at the reporting institution. Repackaging of several debts into a new debt shall be reported as a modification, unless there is also a refinancing transaction that has a larger impact on cash flows. Where forbearance through modification of the terms and conditions of a troubled exposure leads to that exposure’s derecognition and to the recognition of a new exposure, that new exposure shall be treated as forborne debt.