Question
As claims secured on residential property collateral are excluded from the calculation of the total amount owed, can the deduction factor be applied to these claims secured on residential property collateral even though the remaining total amount owed by the obligor (group) exceeds the EUR 1,5 million? Or does it mean that once the remaining amount owed exceeds the limit all claims by the same obligor (group) are not eligible for the deduction?
Background on the question
As claims secured on residential property are excluded from the total amount owed calculation, the claims might be interpreted as preferential and would be eligible for the deduction factor in any case.
Answer
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in theAdditional background and guidance for asking questions. We hope for your understanding.For further information please refer to thepress releaseand the updatedQ&A page.