following the damage caused by the passage of cyclone Yaku in several country regionsthe Superintendency of Banking, Insurance and AFP (SBS) authorized the financial entitiesthrough the Multiple Office 12174-2023-SBSto adopt exceptional measures so that they can be applied to the credits of the debtors who were affected in the Areas declared in a state of emergency due to heavy rains. What are the minimum conditions that they ask for? We tell you here.
Who can access a debt rescheduling?
As established by the SBSthe total term of the consumer loans, mortgage, microenterprise and small business covers up to six months. In dialogue with Andina al Día, the deputy superintendent of banking and microfinance, Jorge Mogrovejosaid that this measure reaches banks, municipal savings banks, rural savings banks, financial institutions and credit institutions.
Affected people may reschedule their credits for up to 6 months. Photo: Marco Cotrina/La República
These exceptional measures may be applied in light of the critical situation that thousands of people living in various areas of the countrydeclared in a state of emergency by the Executive due to the weather phenomena.
The financial institutions they will have a exceptional term, to communicate to the client, up to 30 days after the unilateral modification.
“It is a decision that will be unilateral on the part of the financial entitiessince many clients are not contactable at the moment, but later they can modify their new payment schedule,” the official told Andina.
What are the conditions to reschedule debt in the bank?
As established in the SBS document “Prudential measures related to declarations of a State of Emergency issued by the State”, such operations must meet the following conditions:
- At the end of the month prior to the declaration of state of emergencythe debtors have been classified in the company as “Normal” or “With Potential Problems (CPP)” and with a debt arrears of no more than 30 calendar days.
- Another condition, according to Mogrovejo, is that the debtors are in the areas declared in a state of emergency.
Clients must be up to date with their payments or with a maximum of up to 30 days in arrears. Photo: Andean
It should be noted that these measures will be evaluated by each financial institution, according to the geographical scope that it determines and after analyzing the level of impact on its portfolio of debtors.
What about debtors who do not want to reschedule their debts?
According to the SBS, those customers who do not need to take advantage of this exception measure must contact their entity, with the aim of reversing the rescheduling of the credit and maintaining the original conditions.
Will it affect my credit rating?
As Jorge Mogrovejo pointed out in an interview for Andina, the exception measure that the entities will apply does not lead to refinancing or deterioration in credit rating of the debtors, because the debt will not pass to the “overdue” category.
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