Question
Does the term “obligation” in Article 133 (1) (c) (i) CRR refer to the principal amount, or does it also refer to the interest payment solely?
Background on the question
According to the prospectus, a given debt instrument forsees the possiblity of deferral of interest payment by the issuer. For the purpose of determining the correct exposure, clarification is needed if this causes the debt instrument to be assigned to the equity exposure class according to Article 133 (1) (c) (i) CRR, or if it does not, as the deferral possibility refers solely to the interest payment and not to the principal amount itself.
Answer
This question has been rejected because the issue it deals with is already explained or addressed in the regulatory framework, which is sufficiently clear and unambiguous.For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.