Regulatory Alerts2022-11-16
Agreement No. 012-2022: Parameters and Guidelines for the Final Restoration of the Modified Special Mention Portfolio
The Banking Superintendence of Panama issued Agreement No. 012-2022 to establish the parameters and guidelines for the final migration of the Modified Special Mention credit portfolio back to the risk categories of Agreement No. 4-2013. This regulation supersedes previous pandemic-era relief measures by defining specific classification criteria based on days past due for corporate, consumer, and mortgage loans, while mandating that these restructured credits be treated as restructured for a minimum six-month period. The agreement also mandates the elimination of the Modified Special Mention category from accounting records by December 31, 2022, and requires banks to establish adequate provisions in compliance with International Financial Reporting Standards.