EBA Guidelines on the Management of Non-Performing Exposures and Restructured Exposures (EBA/GL/2018/06)

Circular Letter No. CC/2019/00000061 Headquarters: Rua do Comércio, 148 • 1100-150 Lisbon • Portugal T +351 213 130 000 • www.bportugal.pt Tax ID: 500792771 • Share Capital: € 1,000,000 • Registration at the Lisbon Commercial Registry, No. 51 Form 99999924/T – 01/14 Subject: EBA Guidelines on the management of non-performing exposures and restructured exposures (EBA/GL/2018/06)

The European Banking Authority (EBA) published the “Guidelines on the management of non-performing exposures and restructured exposures (EBA/GL/2018/06)” on October 31, 2018, which entered into force on June 30, 2019.

These Guidelines can be consulted on the EBA website: https://eba.europa.eu/documents/10180/2668883/EBA+BS+2018+358+Final+report+on+GL+on+NPE_FBE_PT.pdf/dafe58a7-933f-4b5f-b7ce-08b097dfda67

The aforementioned document contains a wide range of guidelines and recommendations related to the risk management of non-performing exposures, plans for reducing non-performing exposures, and governance and processes associated with the monitoring, recovery, and restructuring of credit.

Credit institutions supervised by the Bank of Portugal should, from now on, adopt the necessary measures to comply with the aforementioned Guidelines.

The Bank of Portugal emphasizes the importance of institutions giving due compliance to the lines of guidance contained in the document in question, which must be followed and applied in the context of current legislation and regulation and, in particular, function as a complement to the provisions contained in the General Regime of Credit Institutions and Financial Companies regarding the matters in question.