Article 31
Capital instruments subscribed by public authorities in emergency situations
1. In emergency situations, competent authorities may permit institutions to include in Common Equity Tier 1 capital instruments that comply at least with the conditions laid down in points (b) to (e) of Article 28(1) where all the following conditions are met:
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(a) |
the capital instruments are issued after 1 January 2014; |
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(b) |
the capital instruments are considered State aid by the Commission; |
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(c) |
the capital instruments are issued within the context of recapitalisation measures pursuant to State aid- rules existing at the time; |
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(d) |
the capital instruments are fully subscribed and held by the State or a relevant public authority or public-owned entity; |
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(e) |
the capital instruments are able to absorb losses; |
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(f) |
except for the capital instruments referred to in Article 27, in the event of liquidation, the capital instruments entitle their owners to a claim on the residual assets of the institution after the payment of all senior claims; |
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(g) |
there are adequate exit mechanisms of the State or, where applicable, a relevant public authority or public-owned entity; |
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(h) |
the competent authority has granted its prior permission and has published its decision together with an explanation of that decision. |
2. Upon reasoned request by and in cooperation with the relevant competent authority, EBA shall consider the capital instruments referred to in paragraph 1 as equivalent to Common Equity Tier 1 instruments for the purposes of this Regulation.