Question ID: 1958
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Topic: Reporting Templates
Article: 35
Status: Final
Date of submission: 01 Feb 2019
Question
The guidance does not mention Government agencies as valid issuer entities to classify an asset as Government bond (CIC ##1#). However, it seems to be a common industry practise to classify them as such any bond issued by a Government agency. Would classifying a bond as Government bond (CIC ##1#) be correct, when the issuer entity does not have an explicit Government guarantee?
EIOPA answer
Government agencies may receive different levels of support from the Government depending on the jurisdiction and the agency itself. Therefore, there is no general criteria applicable to all bonds issued by Government agencies and each case should be analysed independently. As a reminder, any bond, including those issued by Government agencies, will receive CIC 1 if they are “fully, unconditionally and irrevocably guaranteed by the European Central Bank, Member States' central government and central banks denominated and funded in the domestic currency of that central government and the central bank, multilateral development banks referred to in paragraph 2 of Article 117 of Regulation (EU) No 575/2013 or international organisations referred to in Article 118 of Regulation (EU) No 575/2013, where the guarantee meets the requirements set out in Article 215 of Delegated Regulation 2015/35.