Permission to reduce eligible liabilities instruments
News 6 July 2023
On 19 April 2023, the European Commission adopted new provisions on, among other things, the process for applications for prior permission for reducing eligible liabilities instruments. The Debt Office will therefore apply the application process set forth in the delegated regulation.
On 19 April 2023, the European Commission adopted new provisions on, among other things, the process for applications for prior permission for reducing eligible liabilities instruments. The provisions have been incorporated into Commission Delegated Regulation (EU) No. 241/2014 of 7 January 2014 supplementing Regulation (EU) No. 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for own funds and eligible liabilities requirements for institutions.
Accordingly, the Debt Office has withdrawn the publication of the memorandum Permission from the Debt Office is required to reduce eligible liabilities instruments prior to their contractual maturity. Commission Delegated Regulation (EU) No. 241/2014 contains provisions on what information needs to be provided in the application.
In that memorandum, the Debt Office stated that the agency intended to grant permission to institutions, for which MREL did not exceed the loss absorption amount, without an application. The described arrangement was based on the European Banking Authority's (EBA) proposed technical standards. It is now certain that the European Commission has not adopted the EBA's proposal. The Debt Office will therefore apply the application process set forth in the delegated regulation.
The Debt Office's operations shall be characterized by an openness to the public and the media. The right of access to official business is a cornerstone of Swedish democracy.
Our press officer helps you get in touch with the right person so that you can get your questions answered quickly and easily. He can also provide you with material, answer comprehensive questions about our business and upcoming publications.
Mats Lilja, press officer
Press phone: +46(0)8-613 47 01 (mainly office hours), mobile +46(0)721-561 527
E-mail: Mats Lilja