On 19 December 2016, the Dutch Minister of Finance (the Minister) informed the Dutch Parliament on the recovery framework (herstelkader) that has been put in place for the reassessment of interest rate derivatives agreements (IRS agreements). On the basis of the results of the ‘pilot-phase’ of the recovery framework, which was finalised at the beginning of December, banks will now implement the recovery framework and inform their clients about the process and planning of this operation.
The aim of the recovery framework is to compensate certain clients – mostly small and medium sized enterprises (SMEs) – that have entered into IRS agreements with banks. The recovery framework has been put in place after the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) concluded that the reassessment of the IRS agreements by banks contained errors and was incomplete. The recovery framework forms the basis for the reassessment by banks and provides for a number of steps banks need to take in order to compensate certain clients. Independent experts will clarify the implementation of the recovery framework and – in some cases – provide a binding advice.
The AFM will monitor the process. In addition, the AFM will bi-annual report on this to the Minister.
View the recovery framework (Dutch only), 19 December 2016.
View the Minister’s letter (Dutch only) 19 December 2016.