5. Interest rate Permanent (or temporary) Exposures with high interest rates are one reduction …

Interest rate reduction	Permanent (or temporary) reduction in interest rate (fixed or variable) to a fair and sustainable rate.	Exposures with high interest rates are one of the common causes of financial distress. The financial difficulties of a borrower may partly derive from the fact that the interest rates are excessively high compared with the income of the borrower or from the fact that the evolution of interest rates, as opposed to a fixed rate, has resulted in the borrower receiving finance at an exorbitant cost, compared with prevailing market conditions. In such cases, an interest rate reduction could be considered. Viability and other important
Forbearance measure	Description	considerations If affordability can be achieved only at below-risk or below- cost rates, this should be clearly flagged. This measure could be applied also as a short-term measure.

1. Overview

Summary	Regulation

Requirements
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Standards
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EBA -
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