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For each forbearance measure which does not include a sale of the asset, a checked is carried out to determine whether the corresponding changes in the payment plan exceed this threshold. This is done using the following formula:

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where

  • DO is the reduced financial obligation

  • NPV0 is the net present value of cash flows (including unpaid interest and fees) expected under the original contractual obligations

  • NPV1 is net present value of the cash flows expected based on the business events of the forbearance measure

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For each forbearance measure which includes a sale of the asset, a check is carried out to determine whether the extent of the economic loss exceeds this threshold. This is done using the following formula:

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where

  • L is the economic loss related to the sale of credit obligations

  • is the total outstanding amount of the obligations subject to the sale, including interest and fees

  • P is the price agreed for the sold obligations

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