1. Approval of the agenda 

2.  Update about the Greek PSI – some legal lessons drawn

Issue:

Following the conclusion of the Greek PSI, it is suggested to tackle the following topics:
- issues regarding CDS contracts and impact on the CDS market in the context of the Greek restructuring;
- exchange of information on any litigation and related issues;
- the Eurosystem exemption from the PSI, reasons, consequences.

Documents:

• Presentation on the Greek PSI - The CACs and related litigation
• Presentation on trigger of CDS transactions
• Three general interest questions submitted to the ISDA Credit Derivatives Determinations Committee concerning whether a restructuring credit event has occurred with respect to the Hellenic Republic, http://www.isda.org/credit/
  (Issue No 2012030901; Issue No 2012022401; Issue No 2012022901)

Rapporteur:

The Chairman, Dimitris Tsibanoulis; Niall Lenihan, Otto Heinz

Issue:

First, an overview will be given of the resolution tools as proposed by the Commission in comparison with the Italian legal order. Second, plans related to bail-in will be covered. Finally the UK position on Recovery and Resolution Plans will also be described.

Documents:

• The Commission's consultation paper of January 2011 on resolution tools - http://ec.europa.eu/internal_market/consultations/2011/crisis_management_en.htm
• The Commission's  consultation paper of April 2012 on bail-in http://ec.europa.eu/internal_market/bank/docs/crisis-management/discussion_paper_bail_in_en.pdf
• Presentation - The EU Legal Framework for Crisis Management

Rapporteurs :

Francesca Passamonti, Francis Dickinson

4. Restoring stability and growth in the Portuguese economy

Issue:

EFMLG members will be given an assessment of the economic situation of our host country, Portugal, covering the following topics: (i)The seeds of the crisis (1995-2007);
(ii) The closure of markets (2007-11);
(iii) The Economic Adjustment Programme (2011-2014) and
(iv) What is there beyond 2014?

Documents:

• Presentation by the Bank of Portugal

Rapporteur :

Marta Abreu from the office of the Governor of the Bank of Portugal

5. Bank recapitalisation in Greece

Issue:

Recapitalization of Greek credit institutions is dealt with by the Hellenic Financial Stability Fund (HFSF). The relevant law is constantly subject of amendments and implementing measures are needed. The capital support can take effect through the participation of the HFSF in a capital increase of the credit institutions by means of issuance of common shares/ contingent convertible bonds/ other convertible financial instruments. The Bank of Greece and the HFSF assess the viability of troubled credit institutions according to their business plan and a detailed timetable submitted by the credit institutions for the implementation of the contemplated measures. The viability of the credit institutions is a prerequisite for the capital support.

Documents:

• Presentation

Rapporteur :

Dimitris Tsibanoulis

6. Legislative developments in Hungary

Issue:

Over the last year Hungarian parliament concluded a “Home Protection Plan” which affects the Hungarian banking industry in three areas:  Mandatory early termination of FX-mortgage loans with fixed FX Rate; Special Insolvency Regime for “strategic” Hungarian assets and Restrictions on transactions with “National Assets” which even has extra-territorial effects.

Documents:

• Presentation

Rapporteur :

Frank Tillian

7. Preparation of the Quadrilateral Meeting

Issue:

In view of the Quadrilateral Meeting in September, the agenda and in particular the items to be presented by the EFMLG need to be finalised.

Documents:

• Draft Agenda of the Quadrilateral Meeting

Rapporteur:

The Chairman

8. Miscellaneous

Issue:

Update of legal opinions regarding the European Master Agreements

Documents:

n/a

Rapporteur:

Frank Tillian

Issue:

Court of Appeal rules on interpretation of section 2(a)(iii) of ISDA Master Agreement

Documents:

• http://www.bailii.org/ew/cases/EWCA/Civ/2012/419.html

Rapporteur:

Francis Dickinson

Issue:

Update on Unidroit netting initiative

Documents:

• Preliminary Draft Principles regarding the enforceability of close-out netting provisions
• Draft Principles regarding the enforceability of close-out netting provisions
• Third meeting of the Unidroit Study Group
• Presentation

Rapporteur:

Holger Hartenfels

Issue:

Co-operation with the Luxembourg Financial Lawyers Group (LFLG)

Documents:

• Letter from the LFLG

Rapporteur:

The Chairman