7.4.1.2 Triggers for burden-sharing

In terms of burden-sharing, a distinction should be made between rescue, restructuring, and liquidation aid. Only in the restructuring and liquidation phase is burden-sharing by shareholders and subordinated debt holders required.1 Rescue aid in the form of funding guarantees and liquidity support does not require burden-sharing. For rescue recapitalisations and rescue asset relief measures, burden-sharing must be complied with, either as part of the rescue aid, or the aid must be arranged in a manner that allows for implementation of the burden-sharing measures in the restructuring or liquidation phase. In the rescue phase, the focus lies on the remuneration of the aid measures.