Maturity date of the protection for financial guarantees
- Question ID: 2018/0029
- Date of publication: 29/06/2018
- Subject matter: Protection items in AnaCredit
- AnaCredit Manual: Part II
- Data attribute: Maturity date of the protection
In the case of protection items which are financial guarantees, what should be reported as the “maturity date of the protection” when a loan matures or goes into default? Should it be changed to “Non-applicable” in such scenarios?
As clarified in Section 9.4.2 of Part II of the AnaCredit Reporting Manual, “the maturity date of the protection is a date which is contractually specified. It is the earliest date beyond which the protection is not legally valid, taking into account any agreements amending initial contracts”.
Therefore, if a loan has gone into default and has matured, the maturity date of the protection does not have to change if the creditor has the right to execute the protection. To that extent it is also worth noting that the protection item is reported as long as the creditor has the right to execute the protection (for example, to call the guarantee securing the existing instrument), even if the ”maturity date of the protection” was not updated in the abovementioned case.