GREECE Law and Practice Contributed by: Panagiotis (Notis) Sardelas, Matina Kagkelari and Anna Zlatoudi, Sardelas Petsa Law Firm
and previously the CRR) are applicable to Greek securitisations. More specifically, pursuant to Article 6 of the EU Securitisation Regulation, the originator, spon - sor or original lender of a securitisation should retain, on an ongoing basis, a material net eco - nomic interest in the securitisation of not less than 5%, using one of five methods. The EU Securitisation Regulation exempts from the risk retention requirement securitisations where the underlying assets are obligations of or obliga - tions guaranteed by central governments, cen - tral banks, regional governments/local authori - ties and multilateral development banks. In addition, certain institutional investors must verify that the risk retention obligations have been complied with, as part of their due diligence obligations under Article 5 of the EU Securitisa - tion Regulation. The risk retention regulatory technical standards (RTS) under the EU Securitisation Regulation were published in the Official Journal of the EU on 18 October 2023 as Commission Delegated Regulation (EU) 2023/2175 of 7 July 2023, and came into force on 7 November 2023. From the date on which the RTS came into force, the rele - vant CRR RTS (namely EU Delegated Regulation 625/2014) were repealed (subject to the transi - tional provisions of the EU Securitisation Regula - tion for securitisations that remain grandfathered and that are subject to the previous rules). According to Article 70 of Greek Law 4706/2020, in the case of a breach of the applicable require - ments under the EU Securitisation Regulation (including the risk retention requirements), the national competent authorities – namely the BoG or the Hellenic Capital Markets Commission (HCMC), as provided for in the above law – may
impose the administrative sanctions and meas - ures provided for in paragraph 2 of Article 32 of the EU Securitisation Regulation on any natural or legal person. The same administrative sanc - tions may also be imposed in case of breach of the regulatory obligations laid down in the imple - menting acts of the EU Securitisation Regula - tion, as well as in the regulatory acts adopted by the above national competent supervisory authorities, pursuant to the EU Securitisation Regulation. Notably, among the above admin - istrative sanctions, a fine of up to EUR5 million or up to twice the benefit derived from the vio - lation, where this amount can be determined, is provided for. Despite the discretion provided by the EU Securitisation Regulation, Greece has not provided for any specific criminal sanctions. 4.4 Periodic Reporting Article 13 of the Securitisation Law requires Greek SPEs to submit a valuation report on their real estate property and the liquidation value of all the assets thereof (including loan receivables) to the BoG and the HCMC, on an annual basis. This report must be audited by statutory audi - tors, under the International Financial Report - ing Standards (IFRS). No specific penalties for a breach of such obligations are provided for in the Securitisation Law. The EU Securitisation Regulation also imposes a number of periodic reporting obligations on the originator, sponsor and issuer, to holders of securitisation positions, the supervisory authori - ties and investors, such as the submission of quarterly reports to investors, which must con - tain information on: • the credit quality and performance of the underlying exposures;
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