Commission Implementing Decision (EU, Euratom) 2024/1974 of 12 July 2024 establishing the framework for allocating costs related to borrowing and debt management operations under the diversified funding strategy

• CELEX: Implementing Decision (EU, Euratom) 2024/1974
• Articles: 23

Article 1 Subject matter, scope and governing principle

1.   This Decision establishes a single and unified methodology to allocate costs incurred as a result of borrowing and debt management operations conducted under programmes of financial assistance within the scope of Article 220a of Regulation (EU, Euratom) 2018/1046 and non-repayable support under Article 5(1) of Decision (EU, Euratom) 2020/2053 (‘CAM programmes’).

2.   The implementation of the cost allocation methodology shall be guided by the principles of fairness and equal treatment, ensuring that costs are spread based on the relative share of support received.

Article 2 Definitions

For the purposes of this Decision, the following definitions apply:

(1)

‘beneficiary’ means a Member State or a third country that is a party to a loan agreement under a CAM programme, or the general budget of the Union for non-repayable support under Article 5(1) of Decision (EU, Euratom) 2020/2053;

(2)

‘disbursement’ means the transfer of proceeds obtained through borrowing and debt management operations to finance repayable or non-repayable support to a beneficiary;

(3)

‘funding instruments’ means bonds, notes, commercial paper, EU-bills or any other appropriate short and/or long-term financial transactions under the diversified funding strategy;

(4)

‘interest period’ means a period of twelve (12) months, or such other period which may be specified in the confirmation notice, commencing on the date of disbursement or the previous interest payment date;

(5)

‘liquidity management’ means management of cash flows related to funding instruments and disbursements;

(6)

‘loan agreement’ means an agreement on loan support between the European Union represented by the Commission and a beneficiary under a CAM programme;

(7)

‘borrowing operations’ means operations referred to in Article 2(1) of Implementing Decision (EU, Euratom) 2023/2825;

(8)

‘debt management operations’ means operations referred to in Article 2(2) of Implementing Decision (EU, Euratom) 2023/2825;

(9)

‘liquidity management operations’ means operations referred to in Article 2(3) of Implementing Decision (EU, Euratom) 2023/2825;

(10)

‘short-term funding’ means funding referred to in Article 2(16) of Implementing Decision (EU, Euratom) 2023/2825;

(11)

‘long-term funding’ means funding referred to in Article 2(10) of the Implementing Decision (EU, Euratom) 2023/2825;

(12)

‘single-beneficiary programme’ means a CAM programme whose basic act allows the disbursement of loans or grants to one beneficiary;

(13)

‘multi-beneficiary programme’ means a CAM programme whose basic act allows the disbursement of loans or grants to more than one beneficiary;

(14)

‘NGEU programme’ or ‘NGEU’ means any programme financed under Article 2(2) of Regulation (EU) 2020/2094, in so far as it implements measures referred to in Article 1(2) of that Regulation;

(15)

‘Recovery and Resilience Facility loans’ (‘RRF loans’) mean loan support under Article 14 of Regulation (EU) 2021/241 of the European Parliament and of the Council  ( 10 ) ;

(16)

‘Ukraine Facility’ means the facility established by Regulation (EU) 2024/792 to provide support for Ukraine for the period 2024 to 2027.

(17)

‘MFA+’ means the instrument established by Regulation (EU) 2022/2463 for providing support to Ukraine for 2023.

Article 3 Types of costs

The following categories of costs shall be established:

(a)

cost of funding;

(b)

cost of liquidity management;

(c)

cost of service for administrative overheads.

Article 4 Constitution of programme compartments and time compartments

1.   A programme compartment shall cover one CAM programme. It shall be established following the entry into force of each CAM programme.

2.   Each programme compartment for a multi-beneficiary programme shall also comprise time compartments. A time compartment shall cover the semester starting on 1 January or on 1 July. When a new CAM programme enters into force, the first time compartment shall fall in the semester in which the first disbursement is made and shall end on 30 June or 31 December. For any given programme compartment, only one time compartment shall be active, at any point in time, with the exception of the derogation under Article 5(6) of this Decision.

3.   Any time compartment shall remain active until the amount of disbursements of financial assistance reaches the amount of corresponding long-term funding instruments allocated to it.

4.   Programme compartments for single-beneficiary programmes shall not comprise time compartments.

5.   Programme compartments shall remain active until the overall amount of disbursements of financial assistance reaches the overall amount of corresponding long term funding instruments allocated to it.

Article 5 Allocation of funding instruments and disbursements to programme compartments and time compartments

1.   Disbursements under a given CAM programme, and the related funding instruments allocated to it, shall be attributed to the programme compartment established for that CAM programme. Disbursements under a given multi-beneficiary programme, and the related funding instruments, shall be attributed to the time compartment that is active at the moment in which the disbursement is made.

2.   A disbursement shall remain attributed to the same programme compartment or time compartment in respect to any outstanding amount which is yet to be repaid.

3.   Long-term funding instruments, other than those referred to in paragraph 7, shall be attributed to programme compartments and, if applicable, time compartments that are active at the moment of the conclusion of the borrowing operation generating them.

4.   However, funding instruments raised with a view to funding a disbursement in the following time compartment may be attributed to that time compartment.

5.   Where the amount of disbursements at the end of the semester of a time compartment exceeds the amount of long-term funding instruments, the long-term funding instruments generated from the borrowing operations after the end of the semester of the time compartment shall be attributed to that time compartment until the amount of long-term funding instruments reaches the amount of disbursements of that time compartment.

6.   The attribution of long-term funding instruments to a programme compartment or time compartment shall take place at the moment where the transaction is executed while ensuring, to the best degree, an equitable achievement of the different average maturity targets for each CAM programme over the current funding period and taking into consideration the following factors:

(a)

the aggregate amounts and average maturity target planned under the diversified funding strategy, as set out in decisions adopted under Article 4 of Implementing Decision (EU, Euratom) 2023/2825;

(b)

any requirements stemming from the underlying basic acts, and in particular, the average maturity ceilings of each CAM programme and maximum amount of liabilities that the general budget of the Union is in position to commit to in a given year under that CAM programme;

(c)

the loan maturities set out in the loan agreements concluded between the Union represented by the Commission and the beneficiary;

(d)

any material update to funding or disbursement planning, contained in a decision under Article 4 of Implementing Decision (EU, Euratom) 2023/2825.

7.   Any long-term funding instrument shall remain in part or in full attributed to the same programme compartment or time compartment in respect of any outstanding amount which is yet to be repaid.

8.   By way of derogation from paragraph 1, where the notional amount of long-term funding instruments attributed to a preceding time compartment of the same programme compartment exceeds the amount of disbursements attributed to that compartment in accordance with that paragraph, the disbursements shall continue to be allocated to that time compartment, which will therefore remain active, until the amount of disbursements made reaches the amount of long-term funding instruments.

9.   Long-term funding instruments replacing maturing long-term funding instruments shall be attributed to the same programme compartment or time compartment. Article 7 shall apply in the case of a mismatch between the maturity date of the maturing long-term instrument and the date of borrowing of the long-term instrument replacing it.

Article 6 Liquidity management compartment

1.   The liquidity management compartment shall operate until the borrowing operations authorised in CAM programmes are fully repaid.

2.   Short-term funding instruments, liquidity management operations and debt management operations and the costs arising from them shall be attributed to the liquidity management compartment.

Article 7 Levelling of liquidity balances

1.   The level of liquidity holdings in any programme compartment and time compartment shall be calculated on a daily basis as the difference between inflows and outflows, as set out in step 3 of point 1 of the Annex.

2.   Any positive amount referred to in paragraph 1 (‘liquidity surplus’) shall be on a daily basis allocated from the respective programme compartment or time compartment to the liquidity management compartment, as set out in step 4 of point 1 of the Annex, at the cost of funding of the relevant programme compartment or time compartment on that day.

3.   Any amount corresponding to the negative amount referred to in paragraph 1 (‘liquidity deficit’) shall, on a daily basis, be taken from the liquidity management compartment and attributed to the respective programme compartment or time compartment, as set out in step 6 of point 1 of the Annex, at the cost of funding of the liquidity management compartment, including all transfers set out in paragraph 2, on that day.

Article 8 Calculation of cost of funding of programme compartments and time compartments

1.   Costs of funding of all programme compartments and time compartments shall be calculated on a daily basis.

2.   The cost of funding a funding instrument shall comprise the daily interest in relation to each funding instrument and a potential agio/disagio based on the all-in issuance price.

3.   The daily cost of funding of a programme compartment or time compartment shall comprise the daily cost of funding of the funding instruments attributed to that programme compartment or time compartment after the results of the application of Article 7(2) and (3).

Article 9 Calculation of cost of liquidity management

1.   The cost of liquidity management shall be the sum of the cost of carry in the liquidity management compartment, as set out in point 2 of the Annex.

2.   The cost of carry shall be the difference between the interest accrued under the relevant funding instruments of the liquidity management compartment, the costs and returns resulting from the levelling of any liquidity surpluses or liquidity deficits referred to in Article 7(2) and (3), and the return on investment generated by the holdings.

3.   The return on investment of liquidity holdings shall comprise any related costs of the investment.

4.   The costs of liquidity management shall be calculated on a daily basis.

Article 10 Allocation of costs of liquidity management

1.   The costs of liquidity management shall be calculated as the sum of the daily costs of liquidity management over a quarter. These costs shall be attributed to each disbursement on a pro rata basis of the relative share of the disbursement to total outstanding amounts of disbursements at the end of the quarter.

Article 11 Attribution of cost of funding to a disbursement

1.   The disbursements of the same programme compartment or time compartment shall bear the same average daily cost of funding until their repayment.

2.   For each outstanding disbursement, the daily cost of funding shall be calculated by multiplying the total cost of funding of the programme compartment or time compartment after application of Article 7(2) and (3) with the disbursement amount divided by the total outstanding amounts of disbursements of the programme compartment to which the disbursement is attributed.

Article 12 Cost of service for administrative overheads

The cost of service for administrative overheads shall comprise recurring administrative costs for beneficiaries. It shall comprise set-up costs for RRF loans, within the limits indicated in Article 14 and Article 21(5). The cost of service for administrative overheads shall be calculated in accordance with point 3 of the Annex.

Article 13 Recurring administrative costs

1.   Recurring administrative costs shall comprise any costs incurred by the Commission in the execution of the borrowing and debt management operations, comprised of the following types: legal fees such as those incurred for legal advice and opinions, debt and liquidity management fees, account management and payment management costs, costs for external audit, auction platform maintenance fees, rating agency fees, listing, taxes, registration, publication and settlement fees, information-technology, market related research, consulting fees and other investor relations expenses and management tools well as contractual agent and training fees related to the implementation of the diversified funding strategy.

2.   To the extent that such costs are common to borrowing operations implemented for other financial assistance programmes, the costs included in the calculation shall be calculated based on the pro rata share attributed to borrowing and debt management operations assigned to that CAM programme in the relevant calendar year.

3.   Recurring administrative costs shall be calculated for each disbursement received under each loan agreement on a pro rata basis of the disbursement to the total amounts of outstanding disbursements made under the different CAM programmes at the end of the calendar year.

Article 14 Set-up costs for RRF loans

1.   Set-up costs for RRF loans shall comprise any costs incurred by the Commission in building the capacity for conducting NGEU borrowing, debt management and payment management operations. They include costs related to the establishment of NGEU accounts, the establishment of an auction platform, an investor management tool, other information-technology costs and market related research and consulting fees.

2.   Member States which sign RRF loan agreements shall bear 48 % of the total set up costs.

3.   In 2021, 2022 and 2023, Member States shall pay the set-up costs referred to in paragraph 1 on a pro rata basis of the amount of loan under the signed RRF loan agreement to the total amount of loans under all signed RRF loan agreements, as set out in point 3(2)(i) and (ii) of the Annex.

4.   By 30 June 2024, any unallocated set-up costs to Member States which have signed RRF loan agreements shall be allocated on a pro rata basis to the amount of loans signed under each RRF loan agreement to the total amounts of loans under all signed RRF loan agreements until 31 December 2023, as set out in point 3(2)(iii) of the Annex.

5.   No additional set-up costs for borrowing operations shall be due after the end of the year 2023 or allocated to CAM programmes, unless they fall within the scope of Article 5(1) of Decision (EU, Euratom) 2020/2053.

Article 15 Confirmation notice

1.   In relation to each disbursement, a confirmation notice shall be established which contains the terms giving rise to the cost claim from the Commission.

2.   The confirmation notice shall determine terms for cost of funding payment and principal repayment to be repaid from the general budget of the Union under Article 5(1) first subparagraph, of Decision (EU, Euratom) 2020/2053 for non-repayable support and by the beneficiaries of loan agreements.

3.   The confirmation notice shall contain the following elements:

(a)

the amount of the disbursement,

(b)

the maturity,

(c)

the repayment schedule,

(d)

the attribution of the disbursement to a time compartment,

(e)

interest period indicating the payment date.

4.   The confirmation notice for loans shall also contain any additional elements indicated in the loan agreements.

Article 16 Invoicing of costs of funding

1.   The cost of funding shall be calculated in relation to each disbursement at the end of the interest period determined in the confirmation notice.

2.   The invoicing shall take place at the end of the interest period set out in the confirmation notice. In relation to disbursements where the general budget of the Union is liable for their costs or redemption of principal, such as disbursements registered as external assigned revenue under Article 3(1) of Regulation (EU) 2020/2094 and MFA+ instrument, where Ukraine requests subsidisation of related costs, and to loan disbursements under the Ukraine Facility, the invoices may be grouped per quarter or in an annual invoice covering four quarters of the year.

Article 17 Invoicing of cost of liquidity management

The cost of liquidity management shall be invoiced at the beginning of each calendar year for cost incurred during the previous calendar year.

Article 18 Invoicing of cost of service for administrative overheads

1.   Beneficiaries of loans shall be invoiced at the beginning of each calendar year for the cost of service for administrative overheads incurred during the previous calendar year.

2.   Payments by beneficiaries for the costs of service shall constitute internal assigned revenue within the meaning of Article 21(3), point (a), of Regulation (EU, Euratom) 2018/1046.

Article 19 Repeal

1.   Implementing Decision (EU, Euratom) 2022/2545 is hereby repealed.

2.   References to the repealed Decision shall be construed as references to this Decision and shall be read in accordance with the correlation table in Annex II.

Article 20 Transitional and final provisions

1.   A legacy programme compartment with time compartments is established with this Decision. Such legacy programme compartment shall be constituted by all disbursements attributed to time compartments prior to the entry into force of this Decision, and related funding instruments allocated to them, under NGEU, Regulation (EU) 2022/2463, and any other CAM programme in force before 19 July 2024.

2.   Disbursements under NGEU made from 19 July 2024, and related funding instruments, shall be attributed to the legacy programme compartment and respective time compartments within it.

3.   The first time compartment of the legacy programme compartment shall remain with a constitution period of 7 months, from 1 June 2021 to 31 December 2021. Without prejudice to Article 4(1), new programmes compartments shall be established for CAM programmes whose basic act entered into force in the period from 1 January 2024 until 19 July 2024.

4.   Without prejudice to paragraph 1, disbursements under those CAM programmes made from 19 July 2024, and funding instruments allocated to them, shall be attributed to the respective new programme compartment and, as appropriate, time compartments.

5.   Without prejudice to Article 14, set-up costs for RRF loans shall remain due by the relevant beneficiaries.

Article 21 Entry into force

This Decision shall enter into force the day following that of its publication in the Official Journal of the European Union .

Schedules & Appendices

ANNEX I

ANNEX I

For the purpose of the formulas set out in this Annex, ‘C’ stands indifferently for programme compartment or time compartment, as the costs attributed to one or the other follow the same levelling methodology.

1.    Calculation of the cost of funding

The cost of funding shall be calculated in the following steps:

Step 1: Calculation of the daily total costs of an individual funding instrument in a programme compartment or time compartment or in the liquidity management compartment

The daily accruals shall be calculated:

Leap years shall be integrated in the calculation of daily accruals for each individual long-term funding instrument as follows:

For bond taps, i.e. an increase in size of a past issuance, the first coupon may be calculated as a short or long coupon, running from the tap settlement date to the next coupon date. Coupon payments should be calculated as follows, unless otherwise agreed with investors:

First, by calculating accrued interests running from previous coupon payment date, for each individual long-term funding instrument, these accrued interests shall be calculated as follows:

For short and long coupons, payments should be calculated as follows:

Accrued interests received from investors at issuance temporarily increase liquidity holdings until such time that they are netted with the first coupon payment. Accrued interests are reflected in cost calculations via the liquidity compartment, however they are not part of the daily accruals attached to the funding instruments and its relevant programme compartments or time compartment. All costs or return from borrowing and debt management operations incurred by the Commission are transferred to beneficiaries under this methodology.

The sum of daily accruals implementing the above method for each individual funding instrument shall be equal to the sum of daily accruals over its entire accrual period, as such:

For each funding instrument, the agio/disagio shall be linearly distributed over the lifetime of the instrument:

agio/disagio daily = (100-issuance price):(maturity date-issuance date)

where Issuance price = All-in Price (including bank fees)

For each debt and/or liquidity management transaction, the sum of daily accruals implementing the method for each individual funding or investment instrument shall be calculated as follows:

For each debt and liquidity management instrument, transaction fees shall be linearly distributed over the lifetime of the instrument:

Transactionfees daily = fees:(maturity date-issuance date)

For each funding instrument, the daily total costs shall be calculated:

CoF daily per instrument = ACC daily* +agio/disagio daily

*

The ACC daily will take into account leap year or non-leap year accrual as described in Step 1.

Step 2: Calculation of the aggregate daily total costs of funding

For each programme compartment or time compartment, the daily total costs for the programme compartment or time compartment before the levelling referred to in Article 7 shall be the sum of all daily total costs of each funding instrument attributed to the programme compartment or time compartment:

CoF dailyC(x)pre-levelling =∑ CoF daily per instrument allocated to the C(x)

For the liquidity management compartment the Cost of Funding shall be:

CoF dailyLMCpre-levelling =∑ CoF daily per instrument allocated to the LMC

Step 3: Calculation of the liquidity balances in the programme compartment or time compartments

The level of liquidity holdings shall be calculated on daily basis as follows:

Liquidity C(x) = Inflows [Issuance proceeds + Interest loans/grants  + Repayments loans/grants ] – Outflows [Disbursements + Coupons outstanding debt  + Debt Redemptions]

When Liquidity C(x) is negative, it shall indicate the amount of deficit of the programme compartment or time compartment, that shall be defined as Liquidity C(deficit) and when positive, it shall indicate the amount of liquidity surplus of the programme compartment or time compartment, that shall be defined as Liquidity C(surplus)

Step 4: Calculation of the cost of funding of funding instruments affected by liquidity surplus

This step identifies the part of the CoF of the programme compartments or time compartments with a liquidity surplus that can be attributed to the liquidity held in that programme compartment or time compartment.

The costs of funding related to the funding instruments shall be calculated as follows:

CoF Liquidity surplusC(surplus) =

CoF dailyC(surplus)pre-levelling * Liquidity C(surplus) : TotalC(surplus)

CoF dailyC(surplus)post-levelling = CoF dailyC(surplus)pre-levelling – CoF Liquidity surplusC(surplus)

Step 5: Calculation of the cost of liquidity management compartment in case cost of funding are attributed to it from the programme compartment or time compartment with liquidity surplus

In case the liquidity management compartment receives surplus from the programme compartment or time compartment, the cost of liquidity management compartment shall be calculated as follows:

CoF dailyLMCpost-levelling = CoF dailyLMCpre-levelling + ∑ CoF Liquidity surplusC(surplus)

Step 6: Calculation of the cost of funding of the programme compartment or time compartment with liquidity deficit

Any liquidity deficit in a programme compartment or time compartment is levelled with a transfer of liquidity from the liquidity management compartment at its daily costs of funding (Step 5).

For programme compartments or time compartments with a positive liquidity balance, the post-levelling cost of funding already result from Step 4 above.

CoF Liquidity transfer from LMC = CoF dailyLMCpost-levelling * Transfer amount: Total LMC

CoF dailyC(deficit)post-levelling = CoF dailyC(deficit)pre-levelling  + CoF Liquidity transfer from LMC

The liquidity management compartment is therefore the result of short-term funding instruments outstanding, in addition to any transfers of surplus from other programme compartments or time compartments minus any transfers to compensate deficits from other programme compartments or time compartments. Cost transfers follow a step-by-step approach where, first costs associated to surpluses in other programme compartments or time compartments feed in the liquidity management compartment, and second, average cost of outstanding short term funding instruments and surpluses from other programme compartments or time compartments, is then transferred to other programme compartments or time compartments in deficit. Liquidity holdings are the result of this levelling as well as any costs or returns from said holdings that have not been yet transferred to beneficiaries. Liquidity holdings also reflect the time mismatch between the moment where coupon or accrued interests are paid and received from investors and charged to beneficiaries.

The level of liquidity holdings in the liquidity management compartment shall be calculated on daily basis as follows:

Total LMC(x) = Inflows [Issuance proceeds + Liquidity C(surplus) ] – Outflows [Liquidity C(deficit)  + Debt Redemptions]

Holdings LMC(x) = Total LMC(x)  + RoI of liquidity holdings daily  + LIQM annual payments  + Inflows of liquidity holdings daily – Outflows of liquidity holdings daily

While the cost of funding may vary between programme compartments and between time compartments because of differences in funding conditions beyond the control of the Commission, the Commission shall manage borrowing and debt management operations in order to ensure that each programme compartment or time compartment bears maturity profiles that, to the greatest extent possible, are set close to their targets as defined this Decision.

Step 7: Calculation of the daily cost of funding of a disbursement

The daily cost of funding of disbursement shall be the amount of the disbursement multiplied by the relative share of the disbursement in relation to the programme compartment or time compartment to which it is allocated.

CoF of disbursement in C(x) =

CoF dailyC(x)post-levelling * outstand amount of disbursement: ∑ outstanding disbursements in C(x)

2.    Calculation of Cost of Liquidity Management

The costs of liquidity management per disbursement shall be calculated as the sum of the daily costs of the liquidity management compartment holding after the levelling of liquidity balances of the programme compartments or time compartments over the calculation period. Returns or costs in case of negative rates are calculated on the basis of liquidity available after levelling, i.e. increased by liquidity surpluses and reduced by liquidity deficits, as described in point 1 step 6. Any exceptional fees or penalties paid or received shall be integrated in the calculation of liquidity management costs and added to the return on the transaction at payment date. Any returns shall be deducted as follows:

LIQM quarter = ∑ CoF dailyLMCpost-levelling over the quarter – RoI of liquidity holdings quarter

The LIQM shall be attributed to each disbursement as follows:

LIQM of disbursement =

LIQM quarter *

∑ outstanding disbursement end of quarter : ∑ outstanding disbursements end of quarter

3.    Calculation of Cost of Service for administrative overheads

3.1.    Calculation of recurring administrative costs

Recurring administrative costs shall be calculated as follows:

annual recurring administrative costs total = ∑ recurring administrative cost items for calendar year

Recurring administrative costs shall be allocated as follows:

annual recurring administrative costs per beneficiary =

annual recurring administrative costs total *

∑ disbursement outstanding towards beneficiary end of year : ∑ outstanding disbursements end of year

3.2.    Calculation and allocation of set-up costs

The set-up costs per beneficiary of RRF loans shall be calculated in the following three steps:

(1)

The set-up costs for RRF loans shall be calculated as follows:

set-up costs for RRF loans  = 48 %*∑ set-up cost items

(2)

The set-up costs for RRF loans shall be allocated for the years 2021, 2022 and 2023 to each Member State having signed an RRF loan agreement as follows:

set-up costs per RRF loan signed = set-up costs for RRF loans *

amount of loan signed per Member State end of year : total maximum amount of RRF loans

(3)

As of 1 January 2024, any unallocated set-up costs shall be calculated as follows:

unallocated set-up cost for RRF loans = set-up costs for RRF loans – ∑ allocated set-up cost items to RRF loans in 2021, 2022 and 2023

They shall be allocated as additional set-up costs to disbursements to Member States under RRF loan agreement as follows:

additional set-up costs per beneficiary = unallocated set-up cost for RRF loans end 2023 *

∑ amounts of loan signed per beneficiary end 2023 : total amount of loans under signed RRF loan agreements end 2023

3.3.    Calculation of Cost of Service per beneficiary

CoS Annual = ∑ Recurring administrative cost items + ∑ Set-up administrative cost items

4.    Glossary of acronyms

ACC daily

Accrued interest costs broken down by day

ACC daily leap year

Accrued interest costs broken down by day for a leap year (366 days). ACC non leap year is 365 days.

ACC coupon tap

Accrued interests calculated for short and long coupon (days from original issue date or coupon date to new settlement date)

ACC total

Accrued interests calculated as sum of daily accruals of a funding or investment instrument over entire accrual period (start to maturity)

ADMIN Costs Annual

Sum of administrative costs during the calendar year

agio/disagio daily

agio or disagio broken down by day

Beneficiary

Member State or a third country that is a party to a loan agreement under a CAM programme, or the Union budget for non-repayable support under Article 5(1) of Decision (EU, Euratom) 2020/2053

CoF

Cost of Funding

CoF of an individual claim in C(x)

CoF of a claim in programme compartment X or time compartment X

CoF daily per instrument

CoF per day per funding instrument

CoF dailyC(deficit)post-levelling

CoF per day after the levelling for the programme compartment or time compartment with an initial liquidity deficit

CoF dailyC(surplus)post-levelling

CoF per day after the levelling for the programme compartment or time compartment with an initial liquidity surplus

CoF dailyLMCpost-levelling

CoF per day for the LMC after the levelling

CoF dailyLMCpre-levelling

CoF per day for the LMC before the levelling

CoF dailyC(x)pre-levelling

CoF per day before the levelling of programme compartment X or time compartment X

CoF Liquidity surplusC(surplus)

CoF per day related to the liquidity surplus in the programme compartment or time compartment

CoF Liquidity transfer from LMC

CoF per day related to the liquidity that is transferred to the LMC

CoS Annual

Sum of administrative cost of service during the calendar year

Coupon

Interests paid by the issuer on the bond

Coupon

tap

Amount of interests paid by the issuer on the bond in the case of a bond tap, for short or long coupons, including accrued interests

C(x)

Total sum of claims and liquidity of programme compartment X or time compartment X

Holdings LMC(x)

Daily cash position of the funding pool post levelling and after taking into consideration RoI holdings and interests charged to beneficiaries

Liquidity C(x)

Amount of liquidity in programme compartment X or time compartment X

LMC Costs quarter

Costs of the liquidity management over a quarter

LIQM quarter

Liquidity management carry calculated as the sum of daily costs (LMC) and return of liquidity over the quarter

LIQM annual payments

Liquidity management carry calculated as the sum of daily costs (LMC) and return of liquidity over past periods

Notional

Nominal amount

RoI of liquidity holdings quarter

Return on investment of the liquidity holdings over a quarter

Total LMC(x

Daily liquidity position of the liquidity management compartment before RoI holdings and interest charged to beneficiaries, taking into account short term funding proceeds, surpluses and deficits from programme compartments and time compartments and debt redemption payments

ANNEX II

ANNEX II

Correlation table

Decision (EU) 2022/2545

This Decision

Article 1

Article 1

Article 2

Article 2

Article 3

Article 3

Article 4

Article 4

Article 4

Article 5

Article 5

Article 6

Article 6

Article 7

Article 7

Article 8

Article 8

Article 9

Article 9

Article 10

Article 10

Article 11

Article 11

Article 12

Article 12

Article 13

Article 13

Article 14

Article 14

Article 15

Article 15

Article 16

Article 16

Article 17

Article 17

Article 18

Article 18

Article 19

Article 19

Article 20