Notice No. 1/2007 on the Application of Prudential Regulation and Amendments to Notice No. 1/93

Notices of the Bank of Portugal Notice No. 1/2007 Considering the provisions of paragraph 8 of Article 152 of Directive No. 2006/48/EC of the European Parliament and of the Council, of 14 June 2006, regarding the possibility for institutions/groups to remain subject, during the year 2007, to the prudential regulation existing on 31 December 2006, in accordance with the rules provided for in paragraphs 9 to 14 of that article and in Article 50 of Directive No. 2006/49/EC of the European Parliament and of the Council, of 14 June: The Bank of Portugal, in the exercise of the powers conferred upon it by subparagraph a) of Article 99 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92, of 31 December, establishes the following:

1. Subparagraph c) of paragraph 2 of Part I of the annex to Notice No. 1/93, published in the Official Gazette, 2nd series, of 8 June 1993, shall have the following wording: «c) ...... Real estate leasing operations, carried out until 31 December 2007, which have as their object properties intended for the lessee's housing or multi-purpose properties intended for offices or commerce, which comply with the conditions indicated in paragraph 2 of Article 62 of Directive No. 2000/12/EC of the European Parliament and of the Council, of 29 March, up to the amount of 75% of the value of the properties when these are intended for housing and 50% of the same value in other cases; ... i) ... ii) ... iii) ... Loans granted until 31 December 2007, under the conditions indicated in paragraph 4-B, which are fully secured by mortgages on multi-purpose properties intended for offices or commerce, located in the territory of European Union Member States that allow the same reduced weighting factor;»
2. Subparagraph c) of paragraph 3.2 of Part I of the annex to Notice No. 1/93, published in the Official Gazette, 2nd series, of 8 June 1993, shall have the following wording: «c) Until 31 December 2007, contracts relating to over-the-counter derivative instruments that comply with the following requirements: i) ... ii) ... iii) ...»
3. Paragraph 4-B-3 of Part I of the annex to Notice No. 1/93, published in the Official Gazette, 2nd series, of 8 June 1993, is hereby suppressed.
4. This notice enters into force immediately. Lisbon, 4 January 2007. - The Governor, Vítor Constâncio.