BRRD: Position Paper ISDA on proposals for amendments concerning the harmonisation of grace

At the end of last year, the EU Commission has published a reform package (so-called BRRD2) aimed at amending the Bank Recovery and Resolution Directive, and which foresees important news on the Grace period Powers to be exercised by the resolution Autorithies.

Following these amendments, The International Swaps and Derivatives Association (ISDA) has published a Position Paper regarding the problems of such amendments, among others, the risk of setting European financial institutions in a disadvantaged position at a global level, in addition to the introduction of further uncertainties in the terms of financial instability.