On 28 June 2020, the PRA issued a statement providing guidance to all PRA-regulated firms on the EBA guidelines on Covid-19 disclosures and published PRA disclosure templates.

On disclosure templates, the PRA notes that its letters dated 26 March 2020 from Sam Woods ‘Covid-19: IFRS 9, Capital requirements and loan covenants’ and 4 June 2020 from Sam Woods ‘Covid-19: IFRS 9 and capital requirements – Further guidance on initial and further payment deferrals’ set out guidance designed to promote consistent and robust application of the definition of default in the Capital Requirements Regulation, specifically in the context of Covid-19 payment holidays, moratoria or deferrals (payment deferrals). The PRA states that its guidance took into account the separate guidance to firms issued by the FCA in relation to payment deferrals. A consequence of this guidance is that the form of payment moratoria or similar measures available in the UK may be broader than those specified in the EBA guidelines. With this in mind the PRA considers that it would be appropriate for firms to make disclosures that reflect the UK approach to payment deferrals. The PRA has produced amended versions of the instructions and definitions.