In the Netherlands, for example, 38 percent of total debt of non-financial corporates will mature within the year or will have to be refinanced at a likely higher interest rate. Higher interest expenditures might eventually also trigger some corporate liquidity issues. And alongside households and non-financial corporates, the debt sustainability of euro area sovereigns is also affected by the recent rise in bond yields.
For the significant part of their total exposures to SMEs, which will qualify as retail exposures, the applicable risk weight will actually decrease compared to the existing framework. For most of the remainder, the risk weight will remain unchanged.