5.3 Modalities for mutual lending between DGSs

The cooperation agreement should outline whether, in accordance with the law in their respective jurisdictions, the relevant DGSs agree, in principle, to lend to one another on a voluntary basis.

Where the DGSs do not agree to lend to one another, either because their national law does not allow them to lend to other DGSs, or because of the DGSs’ or the designated authorities’ decision, the agreement should not include any more detail. However, where the DGSs are allowed to lend under their national law but decided against lending, the decision not to lend to one another should not preclude the DGSs from lending to one another at the point of crisis.

Where the DGSs intend to lend to one another, the cooperation agreement should specify in how many working days the DGS receiving a loan request has to reach a decision and what information the DGS asking for a loan should provide. The agreement may include more detail about the repayment deadline and interest rate charged, under the conditions set out in Article 12(2) of Directive 2014/49/EU.