Regulatory Alerts2011-11-09
IBA Circular No. 3 of 2011: Treatment of Interest on Loans and Other Interest-Bearing Assets
The Central Bank of Belize issued this circular to prescribe accounting and reporting requirements for interest on loans and other interest-bearing assets held by licensees. It mandates that loans ninety days or more in arrears be placed on a non-accrual basis with accrued interest reversed from income, while permitting interest capitalization only when the borrower demonstrates normal repayment ability. Licensees must implement written policies governing these treatments and read this document in conjunction with companion circulars on loan loss reserves and asset classification.
Share