Instruction No. 13/2020

Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 .................................................................................................................................................................................................. Topics Supervision :: Behavioral Supervision Mod. 99999911/T – 01/14 Index Text of the Instruction Annexes to the Instruction Annex I – Information regarding the implementation of the public moratorium Annex II – Information regarding the implementation of private moratoria Annex III – Information regarding credit contracts covered by the scope of the public moratorium and private moratoria

Text of the Instruction Subject: Communication of information to the Bank of Portugal regarding the public moratorium and private moratoria

In the current context of the pandemic caused by Covid-19, a set of exceptional measures was approved through Decree-Law No. 10-J/2020, of March 26 (“Decree-Law No. 10-J/2020”), including the implementation by credit institutions and other entities listed in paragraph 1 of Article 3 of the aforementioned instrument (“institutions”) of a moratorium applicable to credit contracts concluded with companies and other beneficiary entities and to permanent own-home housing credit contracts concluded with consumers.

In accordance with paragraph 1 of Article 8 of Decree-Law No. 10-J/2020, the Bank of Portugal is the entity responsible for the supervision and inspection of the regime for access to the moratorium, with the duty, in the exercise of the mandate attributed to it by the legislator, to monitor the implementation by supervised institutions of the support measures provided for in that legal instrument.

Additionally, institutions have developed, together with their respective associations, private moratoria of a voluntary nature, applicable to credit contracts not covered by the provisions of Decree-Law No. 10-J/2020.

Given that the public moratorium and private moratoria have the common objective of supporting Portuguese families and companies affected by income losses resulting from the current situation, it is important to monitor their implementation with bank clients.

Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 Topics Supervision :: Behavioral Supervision .................................................................................................................................................................................................. Mod. 99999911/T – 01/14

Thus, in the exercise of the competence attributed to it by the provisions of paragraph 2 of Article 10 of Decree-Law No. 10-J/2020, and Article 120 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92, of December 31, the Bank of Portugal determines the following:

1. Object and scope of application 1.1. Institutions shall communicate to the Bank of Portugal, in accordance with the provisions of this Instruction, information regarding the implementation of the moratorium created by Decree-Law No. 10-J/2020, of March 26 (“public moratorium”) and the voluntary nature moratoria to which they have adhered under the European Banking Authority Guidelines on public and private moratoria applied to credit operations in the context of the Covid-19 pandemic (“private moratoria”). 1.2. Institutions shall also communicate to the Bank of Portugal, in accordance with the provisions of this Instruction, information regarding credit contracts in portfolio that are covered by the scope of application of the public moratorium and private moratoria. 1.3. For the purposes of this Instruction, “institutions” are considered to be credit institutions, credit financial companies, investment companies, leasing companies, factoring companies, and mutual guarantee companies, as well as branches of credit institutions and financial institutions operating in Portugal.

2. Communication of information regarding the implementation of the public moratorium 2.1. Institutions shall communicate to the Bank of Portugal, by completing the “Public Moratorium” table in Annex I to this Instruction, the following information: (a) Adherence declarations: number of adherence declarations to the public moratorium submitted to the institution, regardless of whether or not the legally provided access requirements are met; (b) Contracts covered by adherence declarations: number of credit contracts covered by the adherence declarations to the public moratorium submitted to the institution;

Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 Topics Supervision :: Behavioral Supervision .................................................................................................................................................................................................. Mod. 99999911/T – 01/14

(c) Declarations in which it was verified that access requirements are met: number of adherence declarations to the public moratorium in which it was verified that bank clients met the legally provided access requirements; (d) Credit contracts covered by support measures: number of credit contracts that benefited from each of the measures provided for in the public moratorium, with only one support measure indicated per credit contract, as follows: (i) Prohibition of revocation of credit lines: measure provided for in paragraph (a) of paragraph 1 of Article 4 of Decree-Law No. 10-J/2020, of March 26, for credit lines and other loans; (ii) Granting of extension of the credit operation: measure provided for in paragraph (b) of paragraph 1 of Article 4 of Decree-Law No. 10-J/2020, of March 26, for credit contracts with capital payment at the end of the contract (bullet payment); (iii) Granting of total suspension of the credit operation (deferral of capital and interest): measure provided for in paragraph (c) of paragraph 1 of Article 4 of Decree-Law No. 10-J/2020, of March 26, for credits with partial repayment of capital or with partial maturity of other monetary installments; (iv) Granting of partial suspension of the credit operation (deferral of capital): measure provided for in paragraph (c) of paragraph 1 of Article 4, conjugated with paragraph 2 of Article 4, of Decree-Law No. 10-J/2020, of March 26, for credits with partial repayment of capital or with partial maturity of other monetary installments. (e) Declarations in which it was verified that access requirements are not met: number of adherence declarations to the public moratorium in which it was verified that bank clients did not meet the legally provided access requirements, detailed according to the nature of the bank client that submitted the declaration and the access requirements that were not met. 2.2. Institutions shall communicate the information elements provided for in the previous number disaggregated according to the nature of the bank clients that submitted the adherence declarations to the public moratorium, namely consumers, companies, sole traders, and other entities.

3. Communication of information regarding the implementation of private moratoria 3.1. Institutions shall communicate to the Bank of Portugal, by completing the “Private Moratorium” table in Annex II to this Instruction, the following information: (a) Adherence requests: number of adherence requests to the private moratorium submitted to the institution, regardless of whether or not the contractually provided access requirements are met; (b) Contracts covered by adherence requests: number of credit contracts covered by the adherence requests to the private moratorium submitted to the institution; (c) Accepted adherence requests: number of adherence requests to the private moratorium in which it was verified that bank clients met the contractually provided access requirements; (d) Credit contracts covered by support measures: number of credit contracts that benefited from each of the measures covered by the private moratorium, with the following disaggregation: (i) Suspension of capital payment with extension of the contractual term: period of capital deferral with extension of the repayment term contractually stipulated; (ii) Suspension of capital payment without extension of the contractual term: period of capital deferral without extension of the repayment term contractually stipulated; (iii) Suspension of capital and interest payment with extension of the contractual term: period of capital and interest deferral with extension of the repayment term contractually stipulated; (iv) Suspension of capital and interest payment without extension of the contractual term: period of capital and interest deferral without extension of the repayment term contractually stipulated;

Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 Topics Supervision :: Behavioral Supervision .................................................................................................................................................................................................. Mod. 99999911/T – 01/14

(v) Extension of the credit operation: only postponement of the due date of the capital installment provided for at the end of the credit contract (bullet payment); (vi) Others: other solutions not covered in the previous paragraphs. (e) Rejected adherence requests: number of adherence requests to the private moratorium in which it was verified that bank clients did not meet the contractually provided access requirements. 3.2. Institutions shall communicate the information elements provided for in the previous number disaggregated according to the private moratorium to which they adhered, as follows: (a) APB Moratoria: moratoria made available by the Portuguese Banking Association; (b) ASFAC Moratorium: moratorium made available by the Association of Specialized Credit Institutions; (c) Other protocol: other private moratorium that observes the requirements provided for in the European Banking Authority Guidelines on public and private moratoria applied to credit operations in the context of the Covid-19 pandemic (EBA/GL/2020/02).

4. Communication of information regarding credit contracts covered by the scope of application of the public moratorium and private moratoria 4.1. Institutions shall communicate to the Bank of Portugal, by completing the “Contracts in Portfolio” table in Annex III to this Instruction, information regarding the number of credit contracts in portfolio covered by the scope of application of the public moratorium and private moratoria to which they have adhered, as well as the outstanding amount associated with these contracts, with the following disaggregation: (a) Housing credit contracts with HPP purpose: credit contracts concluded with individuals outside the scope of their commercial or professional activity to finance the acquisition or construction of permanent own-home housing. Real estate leasing contracts with the purpose of permanent own-home housing for the lessee are also included in this concept. (b) Mortgage credits guaranteed by permanent own-home housing: credit contracts concluded with individuals outside the scope of their commercial or professional activity guaranteed by a mortgage on real estate that is the permanent own-home housing of the borrower, excluding credit contracts covered by the previous paragraph. (c) Housing credit without HPP purpose and other mortgage credits: housing credit contracts that do not aim to finance the acquisition or construction of permanent own-home housing and credit contracts concluded with individuals outside the scope of their commercial or professional activity guaranteed by a mortgage on real estate that is not the permanent own-home housing of the borrower. (d) Credit contracts to companies and equivalents: credit contracts concluded with legal entities and credit contracts concluded with individuals within the scope of their commercial or professional activity. Factoring contracts without recourse, supplies, guarantees, or provided guarantees are excluded. (e) Personal and automobile credit: personal or automobile credit contracts, as defined in Bank of Portugal Instruction No. 14/2013, concluded with individuals, without mortgage guarantee or other guarantee equivalent to that usually used on real estate. Mobile leasing contracts are included. (f) Credit cards: credit card contracts, concluded with individuals and without mortgage guarantee or other guarantee equivalent to that usually used on real estate. (g) Other revolving credit: revolving credit contracts that are not credit card contracts, concluded with individuals and without mortgage guarantee or other guarantee equivalent to that usually used on real estate. This field includes, for example, credit lines, overdraft facilities, or bank current accounts. Credit overdrawals are excluded. 4.2. The communication of the information provided for in the previous number covers only credit contracts in force. 4.3. For the purposes provided for in this number, it is understood as:

Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 Topics Supervision :: Behavioral Supervision .................................................................................................................................................................................................. Mod. 99999911/T – 01/14

(a) Credit contract in force: the credit contract whose obligations remain due, excluding contracts that have been resolved or revoked and that are not subject to executive action; (b) Revolving credit contract: the contract of determined or undetermined duration in which a maximum credit limit is established, which the consumer can use over time up to that limit value and in which, upon amortization of the amounts owed, the credit can be reused; (c) Outstanding amount: amount owed as of the reference date, including due and due capital as long as registered in the balance sheet accounts, as well as interest, commissions, and expenses due, also registered in the balance sheet.

5. Reference period and deadlines applicable to the communication of information 5.1. The information provided for in numbers 2 and 3 shall be communicated to the Bank of Portugal biweekly, with accumulated values since the entry into force of the public moratorium and the availability of private moratoria. 5.2. For the purposes of the previous number, institutions consider the following reference periods: (a) In the first information report, the period up to the 15th day of each calendar month; (b) In the second information report, the period up to the last day of each calendar month. 5.3. The information referred to in the previous numbers shall be communicated within 3 business days after the end of each reference period. 5.4. The information provided for in number 4 shall be communicated monthly to the Bank of Portugal, with reference to the last day of each calendar month. 5.5. Institutions shall provide the information provided for in the previous number together with the first information report provided for in paragraph (a) of number 5.2 in each calendar month.

6. Form of communication 6.1. The information provided for in this Instruction shall be sent to the Bank of Portugal via the BPnet Portal (www.bportugal.net), through the “Moratorium Reporting” service, available in the “Behavioral Supervision” thematic area. 6.2. The reporting file is sent by file transfer with the nomenclature “IMC.<CodAF>.<AAAAMMDD>.zip”, where CodAF corresponds to the institution code, AAAA to the year, MM to the month, and DD to the reference day of the report, for example “IMC.0000.20200531.zip”. 6.3. The model of the file to be used in the communication of information is available in the area of the BPnet Portal referred to above.

7. Transitional provision 7.1. The first communication of information in accordance with number 5.1 shall be sent by June 3, 2020. 7.2. Within the deadline provided for in the previous number, institutions shall additionally report: (a) The information provided for in numbers 2 and 3 with reference to the period between the entry into force of the public moratorium and the availability of private moratoria and the days March 31 and April 30, 2020; (b) The information provided for in number 4 with reference to March 31 and April 30, 2020.

8. Entry into force This Instruction enters into force the day following its publication.

Annex to Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 Topics Supervision :: Behavioral Supervision .................................................................................................................................................................................................. Annexes to the Instruction Annex I – Information regarding the implementation of the public moratorium Consumer Company Sole Trader Others Adherence Declarations Contracts covered by adherence declarations Declarations in which it was verified that access requirements are met Credit contracts covered by support measures Prohibition of revocation of credit lines Granting of extension of the credit operation Granting of total suspension of the credit operation (deferral of capital and interest) Granting of partial suspension of the credit operation (deferral of capital) Declarations in which it was verified that access requirements are not met Have residence in Portugal Are in one of the following situations: (i) prophylactic isolation or illness or providing assistance to children or grandchildren, as established in Decree-Law No. 10-A/2020, of March 13; (ii) reduction of the normal working period or suspension of the employment contract; (iii) registered unemployment at the Institute for Employment and Professional Training, I.P.; (iv) are eligible for extraordinary support for the reduction of economic activity of self-employed workers; (v) are workers of entities whose establishment or activity was subject to determined closure during the period of state of emergency. Are not, on March 18, 2020: (i) in default or non-compliance of credit contracts for more than 90 days (or, if so, do not meet the materiality criterion provided for in Bank of Portugal Notice No. 2/2019 and European Central Bank Regulation (EU) 2018/1845, of November 21, 2018); (ii) in a situation of insolvency or suspension or cessation of payments; (iii) subject to judicial execution by any institution with which they have credit contracts. Have their situation regularized with the Tax and Customs Authority and Social Security, not being relevant for this purpose, until April 30, 2020, debts constituted in the month of March 2020. Have their headquarters and exercise their economic activity in Portugal. Are not, on March 18, 2020: (i) in default or non-compliance of credit contracts for more than 90 days (or, if so, do not meet the materiality criterion provided for in Bank of Portugal Notice No. 2/2019 and European Central Bank Regulation (EU) 2018/1845, of November 21, 2018); (ii) in a situation of insolvency or suspension or cessation of payments; (iii) subject to judicial execution by any institution with which they have credit contracts. Have their situation regularized with the Tax and Customs Authority and Social Security, not being relevant for this purpose, until April 30, 2020, debts constituted in the month of March 2020.

Annex to Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 Topics Supervision :: Behavioral Supervision .................................................................................................................................................................................................. Annex II – Information regarding the implementation of private moratoria APB Moratoria APB Moratoria ASFAC Moratorium ASFAC Moratorium Other Protocol Other Protocol Credit to consumers Mortgage credit Credit to consumers Mortgage credit Credit to consumers Mortgage credit Adherence Requests Contracts covered by adherence requests Accepted adherence requests Credit contracts covered by support measures Suspension of capital payment with extension of the contractual term Suspension of capital payment without extension of the contractual term Suspension of capital and interest payment with extension of the contractual term Suspension of capital and interest payment without extension of the contractual term Extension of the credit operation (loans with capital payment at the end of the contract) Others Rejected adherence requests

Annex to Instruction No. 13/2020 BO No. 5/2020 3rd Supplement • 2020/05/21 Topics Supervision :: Behavioral Supervision .................................................................................................................................................................................................. Annex III – Information regarding credit contracts covered by the scope of application of the public moratorium and private moratoria Number of contracts Outstanding amount Housing credit contracts with HPP purpose Mortgage credits guaranteed by permanent own-home housing Housing credit without HPP purpose and other mortgage credits Credit contracts to companies and equivalents Personal and automobile credit Credit cards Other revolving credit