Longer term to settle debts: Financial relief will be in force until March 31, 2023

The financial relief measures agreed upon at the banking dialogue table, after the national strike that the country experienced last June, were extended until March 31, 2023. BanEcuador made this request to be able to spread its benefits to the public and reduce its unproductive portfolio and delinquency rate, and the Financial Policy and Regulation Board issued Resolution No. JPRF-F-2022-052 including the new date.

Thus, BanEcuador extends the term to access the financial relief mechanism for three more months, with which it seeks that clients can comply with the payment of their obligations and that this allows to continue with the reactivation of the productive sectors.

The Financial Board has already put into effect the new mechanism for debt relief in banks and cooperatives, agreed at dialogue tables

In a previous resolution issued in July, the Board put The Extraordinary and Temporary Relief Mechanism is in force, applicable to the public and private financial sectors and also to the popular and solidarity economy sector, and there it was established that it would be in force until December 31, 2022. Now it is being extended.

The beneficiaries of this mechanism are natural persons who have microcredit, productive SMEs and whose debts have fallen into arrears between January 1, 2020 and June 30, 2022, whose principal balance is less than or equal to $20,000.

They may take advantage of a term of up to 10 years with a three-year grace period of not paying principal or interest, and the past-due interest generated on the original operation will be charged in the refinancing or restructuring from the third to last year of the total term. awarded.

The credits refinanced or restructured under this mechanism will obtain the “A1” risk rating at the time of their instrumentation and as long as they are up to date with their payments. This will make it easier for customers to access new credit operations in the financial system.

BanEcuador: from Manabí, Guayas and Los Ríos are the majority of clients benefiting from debt forgiveness of up to $3,000

This public bank reported that in the arrangement of obligations the interested party may have the advice of an official in a personalized way, with the aim of adjusting to the particular situation of each client that requires support.

BanEcuador will notify the client in advance by text message, and later by phone call so that the beneficiary receives information on the advantages of financial relief. Or the client can go to the entity’s facilities in order to verify the settlement of their obligations and access the restructuring. There will be 26,600 people who will be able to apply for this benefit.

The agreements at the dialogue table also contemplated the forgiveness of debts of up to $3,000. In this case, it was applied to loans past due for more than 180 days until May 31, 2021 and in BanEcuador there were 25,928 loans forgiven for an amount of $58’857,358.21.

With the settlement of debts, the Government emphasizes that it helps to reactivate the economy, to generate new possibilities for the people and to avoid falling into arrears, keeping the credit bureau healthy. (YO)