8 December 2015

Term Sheet for national Credit Lines provided by
the participating Member States to the Single
Resolution Board (SRB)

Credit Line

Individual facility to be provided by each of the
participating Member States to the Single Resolution Board
(SRB)/Single Resolution Fund (SRF) in relation to the
national compartment under the terms and conditions laid
down in this term sheet.
Regarding the necessity to quantify the share of each
Member State and to determine a Fixed Maximum Amount
for the individual Credit Line as requested by many
Member States, the SRB proposes to use the estimates of
the European Commission for option 2b (COM note as of
27 November 2014) for the purpose of this arrangement
("Key") – see Annex 1.
Member States and the SRB shall review the
appropriateness of the Key by the end of 2017, and in any
event when a non-euro area Member State joins the
Banking Union.
The review should serve the purpose to adapt the Key in
light of future developments in the distribution of
contributions by the national banking sectors – see Annex
2.
Member States may choose not to have the provisions on
national approval and staggered payments included in their
respective facility agreement. In such cases, all references
to national approval and staggered payments will be
deleted and a commitment fee introduced. All relevant
adaptations required for such purposes are contained
between square brackets and referenced in the LFA as
footnotes ("OPTION 2").

Fixed Maximum Amount

The Fixed Maximum Amount of the overall Credit Lines of
all participating Member States as set out in Annex 1
amounts to EUR 55bn for this arrangement.
Member States and the SRB shall review the
appropriateness of the Fixed Maximum Amount by the end
of 2017, and in any event when a non-euro area Member
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8 December 2015
State joins the Banking Union.

Fixed Individual Amount

The Fixed Individual Amount for each participating Member
State, as set out in Annex 1, is the sum of EUR 55 bn
times the Key for the respective Member State.

Available Amount

The Available Amount is at any point in time the residual of
the Fixed Individual Amount minus the Available Funding
Capacity in each compartment minus the outstanding
amount of Individual Drawings under the Credit Line.
The Available Amount is reduced by the outstanding
Individual Drawings and increased by Repayments on an
ongoing basis. The Fixed Maximum Amount under this
arrangement is steady throughout the transitional period
according to Article 3(1)(37) SRM Regulation (SRMR),
notwithstanding the review of the Fixed Maximum Amount
foreseen in the Term Sheet.
Each Member State receives a notification by the SRB
about
the
Individual
Drawings
outstanding
and
Repayments for each calendar year.

Available Funding Capacity

The Credit Line will only be used for financing resolution
operations if the following pecking-order according to
Article 5(1) IGA has been applied:1
i.

The available financial means in the affected
national compartment(s), i. e. the collected ex-ante
contributions according to Article 70(1) SRMR
(Article 5(1a) IGA);
ii. The mutualised financial means available in all
national compartment(s) (Article 5(1b) IGA);
iii. The
remaining
means
in
the
national
compartment(s) (Article 5(1c) IGA);
iv. The available borrowings in accordance with Articles
73 and 74 SRMR or financial means from temporary
transfers between compartments in accordance with
Article 7 IGA (Article 5(1e) IGA).

The Available Funding Capacity for each national
compartment is the sum of the available ex-ante
contributions 2 in each compartment and any available
1
Article 5(1d) IGA is not applicable because Credit Lines serve to pre-finance ex-post contributions to be
collected from the banking sector in the Member State concerned.
2 "available ex-ante contributions" describes any ex-ante contributions which are available to be used for a
specific resolution action in the respective compartment at the time of the adoption of the resolution scheme. It
includes ex-ante contributions, which have been duly paid in and are still available in the compartment at the
time of the adoption of the resolution scheme. It does not include ex-ante contributions, which have been used

2

8 December 2015
external borrowing according to Article 73 and Article 74 if
available3. The elements of the Available Funding Capacity
can be considered once, i. e. for one national compartment
only, notwithstanding cross-compartmental relations as set
out in the waterfall according to Article 5(1) IGA.
Before Individual Drawings can be made by the SRB, the
Member States will be notified about the Available Funding
Capacity. Upon request, the SRB stands ready to provide
evidence about the elements of calculating the Available
Funding Capacity (e. g. overview about funding status of
SRF, confirmation that pecking-order according to Article
5(1) IGA has been applied etc.).
Payment requests

The SRB will make a request for payment under the Credit
Line if the Available Funding Capacity in the compartment
concerned is not sufficient to cover losses, costs or other
expenses under a specific resolution scheme.
The SRB will make the payment request in writing
(including with supplementary information about the
elements of the Available Funding Capacity), and send it
via encrypted means, specified in the Facility Agreement,
to addressees at the Member State. The addressees at the
Member State shall be specified in the Facility Agreement.
The Member State(s) commit to making available, subject
to prior national approval, where applicable, the amount
requested by the SRB to an account notified by the SRB to
the Member State. Prior to the payment request and if
applicable, the SRB will strive to provide an early notice to
the Member State which allows the Member State to
initiate precautionary measures for a potential payment
request under the Credit Line on a strictly confidential
basis. The procedure shall not infringe information
requirements from competent bodies in the Member
States.
The Member State must inform the SRB within 3 working
days after the receipt of the request if it will not able to

up to cover losses, costs or other expenses incurred in prior resolution actions. This reading ensures that the
Credit Line can be used to bridge-finance the raising of ex-post contributions for the intended purpose, namely
in a case where the available financial means are not sufficient to cover the losses, costs or other expenses
incurred by the use of the Fund in resolution actions (Art. 71 of the SRM Regulation). A restrictive
interpretation, according to which any ex-ante contributions would be included, which were paid in at some
point in time, irrespective of whether they have been spent or not, would hardly be compliant with the word
"available".
3 "external borrowing according to Article 73 and Article 74 if available" in the view of the SRB describes
borrowed funds which have been contracted and paid in or in the case of a facility and which are immediately
useable for resolution action in the respective Member State at the time of the adoption of the resolution
scheme. This will allow for a clear determination of which borrowings will be included and which will not. It will
also ensure that all Member States are treated equally.

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8 December 2015
provide funding to the SRB and cannot fulfil its contractual
obligation, together with a reasoned explanation. In that
case, the SRB will proceed on the basis of agreed
Representations & Warranties.
If Member States do not choose Option 2, they are not
required to make the loan in full but may choose to make
staggered payments, whereby at least 50% of the Fixed
Individual Amount would be provided under the first
request within four working days, followed by a maximum
of three subsequent disbursements to be provided
thereafter every five business days, unless exceptional
circumstances apply. The exceptional circumstances are
defined as the entry into force of a resolution scheme,
which provides for the application of a resolution tool
requiring a payment above 50% of the Fixed Individual
Amount in order to avert the immediate default of this
entity under resolution.
Repayment

The SRB will repay Individual Drawings under the Credit
Line after ex-post contributions according to Article 71
SRMR have been raised and transferred to the SRB/SRF
from the institutions authorised in the jurisdiction of the
Member State where the resolution took place, and after
borrowings in accordance with Article 73 and 74 or
financial means from temporary transfers between
compartments in accordance with Article 7 IGA for the
respective resolution action have been repaid.
The SRB will repay drawings under the Credit Line to the
account notified to the SRB in the Facility Agreement.

Tenor

Without prejudice to the provisions in the section on
Repayment, the tenor of the Individual Drawings is 24
months.
If the Repayment after a period of 24 months is not
possible, the Member State shall agree on an extension of
the Tenor whereby the extension is limited to 12 months.
The SRB will provide appropriate evidence that the
conditions for making the Repayment after the period of 24
months are not in place.

Applicable Currency

The Credit Line shall be denominated in euro.
Individual Drawings are in principle possible in euro only.
For a Credit Line provided by a Member State whose local
currency is other than euro, Individual Drawings can also
be made under the local currency if applicable and upon
request and prior notification by the SRB.
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8 December 2015
Applicable Interest Rate

In order to be fiscally neutral for the Member States, the
Applicable Interest Rate is the rate representing the
funding costs of the Member State at the time of the
Individual Drawing reflecting a Tenor of 24 or 12 months
respectively.
If no market quotes for one or more Member States are
available at the time of drawing, the following rule shall
apply for the Applicable Interest Rate of that Member
State:
- For Member States for which market quotes in the past
6 months are available and which are not under a
financial assistance program: Average Applicable
Interest Rate for the Member State during the past 6
months for funding with a Tenor of 24 or 12 months
respectively.
- For Member States which are under financial
assistance: the interest rate as set out in the
agreements implementing the financial assistance.
Interest under the Credit Line will be calculated by
participating Member State(s) at the end of every calendar
year or, if applicable, at the time of repayment. They will
be due and payable in arrears at the time of Repayment.
The obligation for the payment of interest rates remains
until full Repayment of the Individual Drawing.

Commitment Fee

No commitment fee shall be payable by the SRB to the
Member State(s).
If Option 2 applies, the SRB shall pay the Member State(s)
during the Availability Period a commitment fee computed
in euro at the rate of 0.1 per cent per annum on the
Available Amount. The accrued commitment fee for each
calendar year shall be calculated by the SRB and be
payable within 20 Business Days after the end of such
calendar year.

Facility Agreement

The SRB will conclude with each Member State a Facility
Agreement based on a final term sheet agreed with all
participating Member States. The Facility Agreement sets
out terms and conditions for the Credit Line and is binding
for each party. The Facility Agreement shall constitute a
legally binding commitment to make funds available under
the conditions laid down in this term sheet and the Facility
Agreement to be concluded.

Use of Funds

The SRB uses the proceeds of the Credit Line to prefinance the ex-post contributions for resolution operations
according to Article 76 SRMR for institutions authorised in
the jurisdiction of the Member State where the resolution
operation took place. Losses, costs or other expenses
5

8 December 2015
incurred by the use of the SRF in the resolution operation
will eventually be covered by ex-post contributions
pursuant to Article 71 SRMR.
The collected ex-post contributions according to Article 71
SRMR are used to repay the Individual Drawings under the
Credit Line provided by the Member State.
Collateral

The Credit Line is unsecured.

Representations & Warranties

The Representations and Warranties include, inter alia, a
yearly update about the Available Amount and about the
Available Funding Capacity before Individual Drawings can
be made.
Furthermore, the Member States and the SRB shall agree
in the Facility Agreement on terms and procedures in case
a Member State does not fulfil its obligations.
In order not to infringe information needs of the Member
States or competent bodies in the Member States (e. g.
national parliaments) the SRB and the Member States shall
agree on appropriate procedures which also take
confidentiality requirements into account.
Additionally, the SRB commits to raising ex-post
contributions in due course in accordance with Article 71
SRMR and the delegated act by the European Commission
based on Article 71(3) SRMR, where existing.

Applicable Law

The Facility Agreement shall be governed by Luxembourg
law.

General review Clause

If all Participating Member States agree to proceed to the
review of their respective loan facility agreements, the
Parties shall proceed to a review of this Agreement as part
of a common process with all other Participating Member
States. As part of the review, the Borrower and the Lender
shall assess the need for amendments. Such a review will
occur at the latest at the Common Backstop Date.

Entry into Force

The Facility Agreement for each Member State enters into
force when the SRMR has become fully applicable and
when the Member State concerned has ratified the IGA and
transposed the BRRD.

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8 December 2015

ANNEX 1 – INITIAL KEY AND NOTES ON THE METHODOLOGY
Table 1: Estimated shares in ex-ante contributions to the SRF during the initial
period.
A

MS

B

C

B
Estimated Share
in Ex-Ante SRF
*
Contributions: Fixed Maximum
2016-2023*
Amount
(%)
(€)

AT

2.86

1,573,000,000

BE

3.40

1,870,000,000

CY

0.20

110,000,000

DE

27.56 15,158,000,000

EE

0.04

22,000,000

EL

1.13

621,500,000

ES

9.62

5,291,000,000

FI

1.97

1,083,500,000

FR

27.79 15,284,500,000

IE

3.30

1,815,000,000

IT

10.46

5,753,000,000

LT

0.06

33,000,000

LU

1.97

1,083,500,000

LV

0.07

38,500,000

MT

0.12

66,000,000

NL

7.57

4,163,500,000

PT

1.55

852,500,000

SI

0.13

71,500,000

SK

0.20

110,000,000

Total
100.00 55,000,000,000
*: Source: Commission services' non-paper on the
estimated aggregate contributions to the Single
Resolution Fund accounting for 2015
contributions (27 November 2014), Table 1,
Column L. Values are rounded to the second
decimal place.

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8 December 2015

While based on the best information available at the time (November 2014), these
estimates rely on assumptions, suffer from missing data points and missing variables,
and come with a significant lag (since they reflect, with a few exceptions, the situation at
the end of 2012). The data for these estimates was submitted directly by Member States
to the Commission services. The Commission services documented all the potential
problems and addressed them to the extent possible, but cannot guarantee on the
quality of the input data.
The following elements should be taken into account when reading the estimates
presented in this document:
1. These estimates were based on the data, methodology and assumptions
described in the Commission Staff Working Document (SWD(2014) 327/2)
accompanying Commission Delegated Regulation (EU) 2015/63, including the
estimates of the treatment of derivatives as described in Section 14 of the same
document and without modelling the additional risk indicators that will have to
be determined by resolution authorities.
2. All the caveats and assumptions described in working document CEGBPI BANK
88 2014 apply. In particular, it should be recalled that:
a) Some banks were excluded from the sample due to missing or inconsistent
data. The final estimates were obtained as follows: sample statistics were
linearly extrapolated to make up for the percentage of total assets
corresponding to the observations that had to be excluded to due missing or
inconsistent data.
b) The final estimates were produced under the assumption that data provided by
the Member States included all of the population subject to BRRD. As a result,
no adjustment was made for the sample-to-population ratio as such. It should
be noted that in some cases there were large differences between the sample
provided for this analysis and EBA and ECB statistics.
3. As a result, the estimates hereby presented, while based on the best information
available to the Commission services at the time, should be interpreted with
caution when comparing point values across Member States. The actual absolute
and relative differences may vary due to unobserved sample selection, and due to
the imputation of data and simplifying assumptions that need to be performed in
order to produce estimates at the Member State level.
4. Latvia and the Netherlands submitted updated data in the course of the month of
October 2014. After performing the steps described in Section 9(b) of
Commission SWD(2014) 327/2 and the necessary estimations, the Commission
services included them in the database used to conduct the analyses whose
results are presented here.

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8 December 2015

ANNEX 2 - REVIEW OF THE KEY
The review should serve the purpose to adapt the Key to the actual share of ex-ante
contributions to the SRF by institutions authorized in the individual Member States (Article
4(2) IGA) in the total ex-ante contributions payable by all institutions authorized in the
participating Member States. The numerator of the share for each Member State shall be
computed as the sum of following elements:
(a) the contributions payable by the institutions authorized in the territory of the Member
State pursuant to Articles 69 and 70 of the SRMR as well as to the delegated and
implementing acts referred to therein, for the years for which the SRB has completed
the calculations before the review occurs;
(b) the contributions payable by the institutions authorized in the territory of the Member
State as calculated in conformity with Articles 69 and 70 of the SRMR as well as to
the delegated and implementing acts referred to therein, for the remaining years of the
initial period referred to in Article 69(1) thereof and on the basis of the most recent
data available at the time of the review4.
The denominator of the share shall be computed as the sum of the numerators of all
participating Member States.

4 In order to properly reflect the composition of the SRF at the end of the initial period (under the

assumption that no disbursements are made), it is important to give full application to Article 8 of Council
Implementing Regulation (EU) 2015/81 over the entire initial period, even only a (few) year(s) of
contributions have been actually calculated. This is the same methodology applied for the European
Commission estimates referred to above, except that the actual and most recent data would feed into it.
9