§2.1 Significant subsidies and guarantees for the investment to the institution

7. Article 133(5)(a) CRR states that legislative programmes should provide ‘significant subsidies or guarantees, including by multilateral development banks, public development credit institutions as defined in Article 429a(2) or international organisations, for the investment to the institution’. 8. The term ‘subsidies’ means funded public interventions such as grants, equity, and debt financing, whereas the term ‘guarantees’ means unfunded public measures. For the purposes of art 133(5) CRR, neither subsidies nor guarantees need to meet the requirements set by Part Three, Title II, Chapter 4 of the CRR to be considered eligible. 9. Subsidies and guarantees can be considered significant for the purposes of Article 133(5) CRR under different conditions: (a) if the legislative programme involves the co-investment into funds investing in equity, where the public participation is at least 10 % of the total amount of the fund; or (b) if the co-investment by the public sector is at least 10 % of the capital of an entity eligible under the respective legislative programme; and/or (c) if the public intervention achieves a reduction of the exposure value of institutions by at least 20 %. The compliance with such conditions should be assessed at the first round of funding of each legislative programme. During the subsequent stages of each legislative programme, the levels of co-investment by the public sector and/or the reduction of the exposure value of the institutions can vary if they reflect the positive performance of the investment or an enlarged pool of investors. 10. If provided under legislative programmes within the meaning of the present Communication, subsidies and guarantees compatible with the State aid framework should be automatically considered eligible under Article 133(5)(a) CRR. 11. Eligible providers of subsidies and guarantees are the entities listed in Article 133(5)(a) CRR and other EU public sector entities such as EU bodies and institutions, central and regional governments of Member States, and EU and national promotional banks and institutions. 12. Where applicable, national promotional banks and institutions subject to the CRR can apply the 100 % risk weight to the equity exposures they incur under the legislative programmes for which they have provided subsidies and/or guarantees, provided that all the requirements set by Article 133(5) as specified by the present Communication are met and the prior approval by the respective competent authorities is granted. 13. The subsidies and guarantees can be provided to the investing institutions or the investees including via co-investment structures or intermediary vehicles established in the EU under EU or national legislative programmes.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07