Regulatory Alerts2020-06-16
Agreement No. 5 (2020) Modifying Articles 39, 41, and 42 of Agreement No. 4-2013 on Credit Risk Management
The Superintendence of Banks of Panama issued Agreement No. 005-2020 to modify Articles 39, 41, and 42 of Agreement No. 4-2013 regarding credit risk management. The amendments formally recognize guarantee letters issued by AMPYME under the PROFIMYPE program as valid collateral for calculating specific provisions to support micro and small enterprises during the COVID-19 pandemic. The regulation establishes specific valuation methods and present value coefficients for these guarantees, aligning them with existing prudential standards for other asset classes.
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