Decision on the types of contracts, arrangements and instruments that are subject to protection in partial transfers

Pursuant to Article 47 paragraph 1 item 6 of the Law on the National Bank of the Republic of North Macedonia (Official Gazette of the Republic of North Macedonia No. 158/10, 123/12, 43/14, 153/15, 6/16 and 83/18 and Official Gazette of the Republic of North Macedonia No. 110/21, 74/24 and 16/25) and Article 63 paragraph 8 of the Bank Resolution Law (Official Gazette of the Republic of North Macedonia No. 209/23), the National Bank of the Republic of North Macedonia Council has adopted the following DECISION on the types of contracts, arrangements and instruments that are subject to protection in partial transfers (Official Gazette of the Republic of North Macedonia No. 71/25) GENERAL PROVISIONS

1. This Decision shall determine the types of contracts, arrangements and instruments
   that are subject to protection when the National Bank of the Republic of North Macedonia (hereinafter: the National Bank) partially transfers assets, rights and liabilities of the bank under resolution, the bridge institution or the asset management company to another entity.
2. Certain terms used in this Decision shall denote the following:
   2.1. "Securitization" shall denote a transaction whereby the credit risk associated with
   certain reference exposures is tranchead where the payments depend on the collection of the exposures, whereby there is subordination of the tranches determining the distribution of losses from those exposures during the ongoing life of the transaction;
   2.2. "True sale securitization" shall denote a transaction in which the underlying
   exposures placed into tranches are transferred by a full title from the balance sheet of the entity from which the transaction originates (the originator) to another entity;
   2.3. "Synthetic securitization" shall denote a transaction in which, through the use of
   complex structured instruments, the credit risk associated with the reference exposures is transferred to another entity, but not the reference exposures themselves. The terms used in this Decision shall have the meaning established by the Bank Resolution Law (hereinafter: the Law). TYPES OF CONTRACTS, ARRANGEMENTS AND INSTRUMENTS
3. Agreements/statements for set-off between the bank under resolution and another
   counterparty shall be considered agreements/statements under Article 63 paragraph 1 item 3 of the Law if they relate to rights or obligations arising from financial contracts or derivatives. Agreements/statements for set-off between the bank under resolution and one or more other counterparties shall be considered agreements/statements under Article 63 paragraph 1 item 3 of the Law in the following cases:

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− the agreement/statement is linked to the activity of the other contracting party as a central counterparty; or − the agreement/statement relates to rights or obligations towards payment or securities settlement systems and is linked to their activity as payment or securities settlement systems. In individual cases, the National Bank may decide that the agreements/statements for set-off between the bank under resolution and one or more other counterparties, which relate to rights and obligations not specified in paragraphs 1 and 2 of this item, shall be considered as agreements/statements covered by Article 63 paragraph 1 item 3 of the Law, if they are recognized as credit risk mitigation instruments in accordance with the National Bank's regulation on the methodology for determining the capital adequacy.
4. Netting agreements concluded between the bank under resolution and another
counterparty shall be considered netting arrangements covered by Article 63 paragraph 1 item 4 of the Law if they relate to rights or obligations arising from financial contracts or derivatives. Netting agreements concluded between the bank under resolution and one or more other counterparties shall be considered netting arrangements covered by Article 63 paragraph 1 item 4 of the Law in the following cases:
− the arrangement is linked to the other party's activity as a central counterparty; or − the arrangement relates to rights or obligations towards payment or securities settlement systems and is linked to their activity as payment or securities settlement systems.
5. Structured financing agreements covered by Article 63 paragraph 1 item 6 of the
Law shall include securitizations based on true sales and synthetic securitizations. In true sale securitisations, any role of the originator in the structure, including servicing the loans, providing any form of risk protection or providing liquidity, shall be considered as a liability which forms part of the structured finance agreement. In synthetic securitisations, the collateral/pledge shall be considered as a right which forms part of the structured finance agreement only if it is attached to assets which are sufficiently specified or that can be sufficiently specified in accordance with the terms of the agreement and applicable legislation. FINAL PROVISIONS
6. This Decision shall enter into force on the eighth day from the date of its publication
in the Official Gazette of the Republic of North Macedonia, and shall apply from 13 October 2025. D. No. 02-10864/12 Governor and Chairman 27 March 2025 of the Council of the National Bank Skopje of the Republic of North Macedonia Anita Angelovska-Bezhoska