RESOLUTION OF THE NATIONAL COMMISSION ON THE FINANCIAL MARKET OF THE REPUBLIC OF MOLDOVA

of October 15, 2024 No. 47/2

About approval of the Regulations on risks assessment when rendering services in management of individual credit portfolios of service providers of collective financing

Based on Item (4) article 33 of the Law on services of collective financing No. 181/2023 (The official monitor of the Republic of Moldova, 2023, No. 272 - 273 Art. 470) the National commission on the DECIDES: financial market

1. Approve Regulations on risks assessment when rendering services in management of individual credit portfolios of service providers of collective financing it (is applied).

2. This resolution becomes effective from the date of publication in the Official monitor of the Republic of Moldova.

Approved by the Resolution of the National commission on the financial market of the Republic of Moldova of October 15, 2024 No. 47/2

Regulations on risks assessment when rendering services in management of individual credit portfolios of service providers of collective financing

The provision partially shifts provisions of the Delegated regulations (EU) 2022/2118 European commissions of the July 13, 2022 supplementing Regulations (EU) 2020/1503 European parliament and Council regarding the normative technical standards concerning the managements of individual credit portfolios of service providers of collective financing determining elements of technique of assessment of credit risk, information on each individual portfolio which is subject to disclosure to investors and also necessary politicians and procedures concerning reserve funds, CELEX: 32022R2118, European Union published in the Official magazine L 287/50 of November 8, 2022.

Chapter I. General provisions

1. The regulations on risks assessment when rendering services in management of individual credit portfolios of service providers of collective financing (further - the Provision) establish elements which shall be included in the description of evaluation method of credit risk, provided to investors by the service provider of collective financing (further - the supplier) in case the supplier offers services in management of individual credit portfolios.

2. For the purposes of the Provision the concepts determined by the Law on services of collective financing No. 181/2023 are used (further - the Law No. 181/2023), and also concept:

nominal value of the credit - the amount which is actually enclosed by the supplier in each separate project of collective financing / offer of consumer loan for each investor.

3. Suppliers take necessary measures in order that information provided to investors according to requirements of the Provision was easily available, in the special Section on the official web page of the supplier, was provided in clear and easily readable form, stated so that to facilitate understanding of information as the National commission on the financial market (further - NKFR), and clients of the supplier, including potential unsophisticated investors, and also there was accurately otlichima from advertizing messages.

4. Suppliers provide access to investors to information relating to their portfolios by means of appropriate means of personal identification, and also to be convinced that information provided to investors was exact, reliable and was regularly updated, including:

1) the creditworthnesses this for evaluating are consecutive, complete and adequate;

2) evaluation methods correspond to complexity and level of the risks connected with individual projects of collective financing and/or portfolios are based on reliable data and are subject to regular updating;

3) procedures of data management are steady, well documentary, reliable and regularly updated.

5. All process of risks assessment assumes permanent collection and permanent assessment of information which can become public, according to the Provision, from the point of view of observance of requirements of the Marine life protection act of personal data No. 133/2011.

Chapter II. Elements, including format which shall be included in the description of evaluation method of credit risk

6. The description of evaluation method of credit risk of individual projects of collective financing provided to investors / the offers of consumer loan selected for the investor's portfolio according to Item a) parts (3) and parts (4) article 33 of the Law No. 181/2023, contains the following elements:

1) the criteria and the main financial performance used for determination of feasibility and stability of business plans of individual projects of collective financing / offers of consumer loan which will include, at least, the estimative profitability of the project (EPP), settlement interest rates for certain period, the crediting period, risk degree;

2) the analysis of the expected cash flows on individual projects of collective financing / to offers of consumer loan and assessment of degree of definiteness of these cash flows on various temporary periods which will include the expected receipts according to the payment schedule, taking into account the servicing commissions and potential losses on portfolio of the unsuccessful credits;

3) the analysis of characteristics of the sector of activities of developers of projects, including extent of the competition in this sector;

4) assessment of knowledge, experience, reputation of developers of projects and their capability to manage business activity in the specific sector of the project;

5) procedures of acceptance and recognition of real guarantees or personal guarantees, measures for decrease in credit risk and their expected influence;

6) schedule type of loan repayment and frequency of payments;

7) procedures of reference of each individual project of collective financing / offers of consumer loan to the corresponding category of risk as it is determined in risk management system;

8) source and type of the data used in subitems 1) - 7).

7. The description of evaluation method of credit risk provided to investors at the level of the investor's portfolio according to Item b) parts (3) and parts (4) article 33 of the Law No. 181/2023 the explanation of how the following elements are considered in the course of creation of portfolio includes:

1) distribution of the credits on repayment periods within one portfolio;

2) interest rate for each credit in one portfolio;

3) share of the credits in certain portfolio issued to the same developer of the project / debitora-potrebitelya or group of the developers of the project connected among themselves / debitorov-potrebiteley;

4) share of the credits in certain portfolio issued to the developers of projects registered or acting in the same jurisdiction or geographical zone;

5) share of the credits from this portfolio issued to developers to the projects / debtors consumers performing activities in the same sector;

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