Purposes of the creditor participation instrument

The creditor participation instrument may be used for the following purposes: 1. to recapitalise the institution or group entity to the extent necessary to a) restore its ability to meet the conditions for authorisation and to carry on the activities for which it is authorised under Directive 2013/36/EU or Directive 2014/65/EU, and b) sustain sufficient market confidence in the institution or group entity, where there is a reasonable prospect that applying this instrument, together with the measures implemented under the business reorganisation plan to be submitted under section 102, will, in addition to achieving the resolution objectives, restore the financial soundness and long-term viability of the institution or group entity concerned; 2. to convert eligible liabilities into Common Equity Tier 1 instruments, or to reduce the nominal value of eligible liabilities, in cases where the liabilities are transferred a) to a bridge institution, with a view to providing capital for the bridge institution, or b) under the business sale tool or the tool of transfer to an asset management vehicle.