Regulatory Alerts2022-01-01 | JPRF-F-2022-045Resolution No. JPRF-F-2022-045: Application of the Organic Monetary and Financial Code Regarding Unrecoverable Credits in the Asset Risk Classification and Provisioning Norm
The Financial Policy and Regulation Board of Ecuador issued Resolution No. JPRF-F-2022-045 to implement Article 207.1 of the Organic Monetary and Financial Code, which allows public financial entities to forgive loans up to US$10,000. The resolution defines 'unrecoverable' credits as those classified as 'E' and fully provisioned, requiring public entities to report these forgiveness actions to the Superintendency of Banks. This regulatory update ensures compliance with constitutional mandates for financial stability while facilitating debt relief measures for small-scale public sector lending.
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