9.8.6 Concluding remarks on burden-sharing

The current section has illustrated that burden-sharing1 is essentially based on two elements: i) a sufficiently large write-down or first-loss tranche, and ii) an adequate remuneration. There is another element: i.e. the claw-back. However, this element is related to the other two elements. A claw-back mechanism is required when the transfer value exceeds the REV. The difference between the transfer value and REV constitutes additional aid which has to be recovered (by means of a claw-back). It should be pointed out that a transfer value exceeding the REV means that the write-down or first-loss tranche was not sufficiently large. Thus, a claw-back is needed when the first element of burden-sharing is insufficient. This way, the claw-back is related to the first element of burden- sharing. It should also be pointed out that a claw-back can be achieved by increasing the level of remuneration. This way, the claw-back is related to the second element of burden-sharing.