Regulatory Alerts2023-10-31
DBFIA Practice Direction No. 8: Treatment of Exposures Previously Granted Approval under Section 57(2)
The Central Bank of Belize issued Practice Direction No. 8 to manage existing exposures exceeding the new 25% single borrower limit cap under the Domestic Banks and Financial Institutions Act. The directive permits banks to maintain previously approved loans granted under Section 57(2) until their outstanding balances fall below the statutory threshold, provided the exposures are reduced in accordance with agreed repayment terms. Banks must adhere to specific monitoring requirements and submit annual business performance reports while other conditions attached to the original approvals are no longer applicable.
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