On Sep. 17, CZC CB reported compliance re EBA definition of default.
CZC CB announced publication of EBA amending guidelines on the definition of default under article 178 of Regulation 575/2013 (EBA/GL/2026/05).
Follows EBA May 2026, final report amending Guidelines on application of the definition of default, following public consultation issued Jul. 2025, see #261017.
Overview
Guidelines update the EBA definition of default framework following CRR3 (Regulation (EU) 2024/1623), particularly on debt restructuring and forbearance measures.
Also, clarifies when forbearance leads to a reduction in debtor's financial obligation indicating unlikeliness to pay, retaining net present value approach and 1% threshold.
Amongst, other things, the Days-past-due limit for individual invoices in factoring transactions has been extended from 30 to 90 days.
References to distressed restructuring replaced with CRR3 forbearance terminology.
Existing conditions for the return of restructured exposures from default to non-default status remain unchanged.
Guidelines apply from Oct. 19, 2026, and CZC CB announced it will comply with the guidelines when exercising supervision from the date of notification.
