Directive 11 of 2025, titled Prudential treatment of distressed restructured credit exposures, specifies the minimum requirements relating to the identification, classification, treatment and reporting of distressed restructured credit exposures. It also directs banks on the proper application of the relevant requirements of regulation 67 of the Regulations relating to Banks. Following the publication of Directive 11 of 2025, the Prudential Authority (PA) identified an inconsistency between paragraphs 2.9.4 and 2.9.8 regarding the treatment of a distressed restructured credit exposure that is restructured again during the probation period due to financial distress. Paragraph 2.9.4 provides that a further amendment of the terms and conditions of a distressed restructured credit exposure during the probation period due to financial distress must trigger a restart of the probation period. Paragraph 2.9.8 provides that, where a distressed restructured credit exposure defaults or is restructured again during the probation period due to financial distress, the probation period must not be reset. The purpose of this Directive is to repeal and replace Directive 11 of 2025 to remove this inconsistency and clarify the circumstances in which the probation period must restart.