Regulatory Alerts2025-05-30 | NCF-10Technical Standards for the Recognition of Interest and Accounting Reclassification of Loans and Contingencies of Insurance Companies
The Norms Committee of the Central Reserve Bank of El Salvador issued Technical Standards establishing criteria for insurance companies to recognize accrued interest on active operations and reclassify loans to past-due status upon exceeding 90 days of delinquency. The regulation mandates the suspension of interest recognition for loans with more than 90 days of arrears and requires the accounting treatment of contingencies arising from guarantee defaults as past-due loans. These standards apply to all insurance entities in El Salvador and replace previous technical norms approved by the Superintendency of the Financial System.
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