ANNEX III

Instructions for filling templates for loan-by-loan information

This Annex III contains instructions for the use of the data templates for non-performing loans, provided for in Annex I, and of the data glossary set out in Annex II. The instructions are structured into two parts. Part 1 contains general instructions including references, conventions applicable to the templates and an explanation of how to use the data glossary. Part 2 provides specific instructions in relation to the data templates.

PART 1

GENERAL INSTRUCTIONS

1.   REFERENCES

In addition to the definitions laid down in Article 2, the following definitions and abbreviations shall apply for data templates for non-performing loans and for the data glossary:

(a)	‘loan’: this term is conventionally used in data templates to refer to ‘credit agreements’ as defined in Article 3, point (13), of Directive (EU) 2021/2167;

(b)	‘secured loan’: means a loan for which either collateral has been pledged or financial guarantees have been received, including the unsecured part of a partially secured or partially guaranteed exposure;

(c)	‘commercial real estate’: means any income-producing real estate, either existing or under development, with the exception of social housing and of property owned by end-users, as defined in Article 2 of the Commission Delegated Regulation (EU) 2020/1224 of 16 October 2019;

(d)

‘residential real estate’: means any immovable property, available for dwelling purposes, including buy-to-let housing or property, that is acquired, built or renovated by a private household and that is not qualified as commercial real estate, as defined in in Article 2 of the Commission Delegated Regulation (EU) 2020/1224 of 16 October 2019;

(e)	‘IAS’ or ‘IFRS’: means the ‘International Accounting Standards’, as defined in Article 2 of Regulation (EC) No 1606/2002 of the European Parliament and of the Council;

(f)	‘FINREP’: means the financial information templates referred to in Annex V of Commission Implementing Regulation (EU) 2021/451;

(g)	‘ANACREDIT’: means the common granular analytical credit database referred to in Regulation (EU) No 2016/867 of the European Central Bank.

2.   DATA GLOSSARY

The data glossary, which is an integral part of the data templates, contains all the information on the data fields to be provided in the data templates for non performing loans. That information allows credit institutions and prospective buyers to understand how each data field should be used/completed, the applicability of each field in relation to both the borrower type and the loan type. The data glossary also provides references to the EU legal acts that use similar data fields.

With the data glossary, credit institutions are able to identify their internally available data for the valuation of transactions concerning non-performing loans and compare those data with the data glossary. Specifically, the data glossary contains a list of all the data fields included in the data templates for non-performing loans with their specifications, including:

(a)	the index number for each data field;

(b)	the label of each data field;

(c)	a description of the information that should be provided in each data field;

(d)	the borrower type to which each data field is applicable, including corporates, private individuals or all;

(e)	the loan type to which each data field is applicable, including secured loan or all (secured and unsecured loans);

(f)	which data fields are marked as ‘Mandatory’;

(g)	the field type, which can be one of the following: ‘Boolean’, ‘Choice’, ‘Date (DD/MM/YYYY)’, ‘Alphanumeric’, ‘Percentage’ and ‘Number’;

(h)	references to the EU legal acts that use similar data fields.

3.   CONVENTIONS

Unless stated otherwise in the ‘description’ column of the data glossary, credit institutions shall data populate all data fields with the data at the as of the cut-off date.

In the data glossary, the ‘field type’ column sets out the choice of format standards for ‘Boolean’, ‘Choice’, ‘Alphanumeric’, ‘Number’, ‘Percentage’ and ‘Date’ fields. However, the parties involved in the transaction may agree to use different format standards.

Where the field type is ‘Boolean’, the field choice is ‘Yes’ or ‘No’.

Where the field type is ‘Choice’, credit institutions shall select from a list the choice that is applicable to the data field. The choice field shall be entered as the full name of the choice option. For example, where the choice field is ‘(a) ’Private individual’, the credit institution shall enter ‘Private individual’ into the data template.

Where the field type is ‘Alphanumeric’, credit institutions shall enter free text into that data field. That free text may consist either of alphabetical and numerical symbols, or of a finite sequence of characters.

Where the field type is a ‘Number’, credit institutions shall enter a number expressed to two decimal places. Unless stated otherwise in the data glossary, all numerical values are expressed as positive numbers. Furthermore, where relevant credit institutions shall provide the amounts in their own currency.

Where the field type is a ‘Percentage’, credit institutions shall enter a percentage expressed as a ratio to two decimal places.

Where the field type is a ‘Date’, credit institutions shall use the format ‘DD/MM/YYYY’.

4.   MANDATORY DATA FIELDS AND ADDITIONAL INFORMATION

Credit institutions shall provide a value for all data fields that are marked in the data glossary as mandatory, except where those data are not relevant for the underwriting criteria specified in the description of the data field or are not relevant in respect of the borrower type or the loan type.

For data fields that are not marked as mandatory in the data glossary, credit institutions shall make reasonable efforts to provide information. However, when those data are not available under the template format, credit institutions may provide those data in a different format or not provide those data at all.

Credit institutions that agree with a prospective buyer to provide more information than required by this Regulation by using the template format, shall add rows with their own specified index (1,xx.1; 3,xx; 4,xx; 5,xx) under the template concerned and in the data glossary. For such additional information, credit institutions may use the 2018 version 1.1 EBA NPL transaction data templates as a reference. Such additional information should as a rule not contain additional personal data, in line with the principle of data minimisation and data protection by design and by default.

PART 2

TEMPLATE RELATED INSTRUCTIONS

1.   COUNTERPARTY (Template 1)

Template 1 provides the information necessary to identify the counterparty where that counterparty may assume the role of ‘borrower’ or ‘protection provider’ in relation to different loan contracts. The counterparty may, in turn, be a private individual or a corporate. Where the counterparty is a corporate, it may or may not be part of a counterparty group. In addition, Template 1 covers some information on any insolvency or restructuring proceedings to which the counterparty is subject. Credit institutions shall provide further information on any legal proceeding in relation to a particular loan in Template 3.

Credit institutions shall provide the information required by Template 1 in accordance with the specifications laid down in the data glossary of Annex II. Template 1 is linked to the other templates by the use of the counterparty identifier, which is also included in Template 2. Credit institutions may provide additional information in accordance with Part 1, ‘General instructions’, Section 4.

2.   RELATIONSHIP (Templates 2.1; 2.2; 2.3; 2.4)

Template 2 provides the relationship between Template 1 and the other templates by using unique identifiers applied to each counterparty, loan, mortgage guarantee and protection. Credit institutions shall specify those identifiers at the cut-off date to identify the non-performing loan that are object to a sale or transfer transaction.

Template 2.1 shows the relationship between borrowers and loans. One borrower may have several loans that are identified by the related loan identifiers. A loan may in turn have one or more counterparties.

Template 2.2 shows the relationship between mortgage loans and protections (collateral, guarantee). A mortgage deed may relate to a pledge of collateral or to several collaterals, which relate in turn to a loan or several loans. On the other hand, a collateral may refer to one or multiple mortgage deeds.

Template 2.3 shows the relationship between loans other than mortgage loans and protections (collateral, guarantee). A loan may have several collaterals, and a collateral may be related to several loans.

Template 2.4, shows the relationships between the guarantee received and its protection provider.

Credit institutions shall provide the information required by Template 2 in accordance with the specifications laid down in the data glossary of Annex II.

3.   LOAN (Template 3)

Template 3 provides information on the contractual loan agreement, including any lease agreement and forbearance measure granted. In addition, template 3 covers information on any legal proceeding referred to the loan, including, among others, the legal status, the stage reached in legal proceedings and the date of initiation of legal proceedings.

Credit institutions shall provide the information required by Template 3 in accordance with the specifications laid down in the data glossary of Annex II. Template 3 is linked to the other templates by the use of the loan identifier, which is also included in Template 2. Credit institutions may provide additional information in accordance with Part 1 ‘General instructions’, Section 4.

4.   COLLATERAL, GUARANTEE AND ENFORCEMENT (Templates 4.1; 4.2)

Template 4.1 provides information on any collateral, including immovable and movable property collateral, and guarantees which secure a loan. In addition, the template covers relevant information on any applicable enforcement procedure.

Credit institutions that are a lessee in a lease contract shall provide information on any lease asset (i.e., right-of-use assets) recognised in their financial statements in accordance with the applicable accounting standards.

Credit institutions shall also provide the latest estimated value of any collateral before or at the cut-off date. The latest estimate value may be calculated either internally by the credit institution, or by an external valuer. Credit institutions shall provide the latest evaluation (internal or external), when it is available. When both internal and external valuations are available, credit institutions may provide the prospective buyer with both values with the related valuation dates.

In case of mortgage guarantees, credit institutions shall provide the information on ‘mortgage amount’, ‘lien position’, and ‘higher ranking loan’ in Template 4.2.

Credit institutions shall provide the information required by Template 4 in accordance with the specifications laid down in the data glossary of Annex II. Template 4.1 and template 4.2 are linked to the other templates by the use of the protection identifier and the mortgage identifier, which are also included in Template 2. Credit institutions may provide additional information in accordance with Part 1 ‘General instructions’, Section 4.

5.   HISTORICAL COLLECTION OF REPAYMENTS (Template 5)

Template 5 provides information on the historical collection for each loan before the cut-off date, including when the credit institution has used an external collection agent.

Credit institutions shall aggregate the total historical repayment amounts per month and present those amounts in separate columns, covering a minimum period of 36 months before the cut-off date.

Credit institutions shall provide the information required by Template 5 in accordance with the specifications laid down in the data glossary of Annex II. Template 5 is linked to the other templates by the use of the loan identifier, which is also included in Templates 2 and 3. Credit institutions may provide additional information in accordance with Part 1 ‘General instructions’, Section 4. Credit institutions may provide a longer time series before the cut-off date.