17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa
17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa
17107/12 FL/ne 1 DG E 2 A COU CIL OF THE EUROPEA U ... - Europa
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c. for directly related support actions<br />
6. Pricing, risk and revenue sharing<br />
The Debt Instruments shall bear a price, to be charged to the be<strong>ne</strong>ficiary, in accordance with the<br />
relevant rules and criteria of the entrusted entities or dedicated investment vehicles and in li<strong>ne</strong> with<br />
best market practices and best practices.<br />
As regards direct mandates to entrusted entities, the risk-sharing pattern shall be reflected in an<br />
appropriate sharing between the Union and the entrusted entity of the risk remu<strong>ne</strong>ration charged by<br />
the entrusted entity to its borrowers.<br />
As regards dedicated investment vehicles, the risk-sharing pattern shall be reflected in an<br />
appropriate sharing between the Union and the other investors of the risk remu<strong>ne</strong>ration charged by<br />
the dedicated investment vehicle to its borrowers.<br />
Notwithstanding the risk-sharing pattern chosen, the entrusted entity shall always be expected to<br />
share a portion of the defi<strong>ne</strong>d risk and shall always bear the full residual risk tranche.<br />
The maximum risk covered by the Union budget shall not exceed 50% of the risk of the target debt<br />
portfolio under the debt instrument. The maximum risk-taking ceiling of 50% shall apply to the<br />
target size of dedicated investment vehicles.<br />
7. Application and approval procedure<br />
Applications shall be addressed to the entrusted entity or a dedicated investment vehicle,<br />
respectively, in accordance with their standard application procedures. The entrusted entities and<br />
the dedicated investment vehicles shall approve the projects in accordance with their internal<br />
procedures.<br />
<strong>17107</strong>/<strong>12</strong> <strong>FL</strong>/<strong>ne</strong> 82<br />
ANNEX TO ANNEX <strong>DG</strong> E 2 A E