The Financial Policy and Regulation Board resolved to extend the term of this measure that expired on December 31, 2021.
The Financial Policy and Regulation Board It resolved to extend until June 2022 the period for debts that are maintained with public and private banks to be recorded as overdue 61 days after the payment date.
This December 30, 2021, the agency issued resolution JPRF-F-2021-008 in which it was established that “entities of the public and private financial sectors, in the financial statements until June 30, 2022, will record the transfer to overdue accounts, of the operations of the different credit segments “.
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Initially, the deadline for the financial system to register debts as past due expired on December 31, but based on a technical report from the Superintendency of Banks and Insurance the Board resolved to expand it.
One of the arguments for executing the measure is due to the effects of the COVID-19 pandemic that affected the credit portfolio of banking entities, “which concentrate their credit placement strategy in sectors with lower purchasing power, such as informal employment sectors and medium / low income ”, for which the Superintendency recommended that the recording of the transfer to overdue accounts be allowed.
New term of 61 days granted by the Board to register overdue debts; it will be applied until June 2021
Rosa Guerrero, advisor to the Superintendency and vice president of the Financial Inclusion Initiative for Latin America and the Caribbean (Filac), explained that although the economic situation affected by the pandemic has been recovering, the expected levels have not yet been reached, so an extension of the term was proposed.
This, he said, will allow public and private banking clients to “have more space to restructure their operations freely and voluntarily.”
This restructuring of the portfolio with clients reached $ 10 billion in June 2020, and to date that refinancing has been reduced by about $ 4.6 billion, according to Guerrero.
“It is important that these resources are recovered. These extraordinary mechanisms allow to defer the term of the debts, they are temporary norms applied by the pandemic that have allowed to support microentrepreneurs, households, among others, without putting depositors’ resources at risk ”, stated the specialist.
These measures have the effect that the risk profile of financial system customers is not affected and they can access new loans. (I)
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