Regulatory Alerts2021-06-29
Agreement No. 002-2021: Establishing Parameters and Guidelines for Modified Credits
The Superintendence of Banks of Panama issued Agreement No. 002-2021 to establish risk management parameters and guidelines for modified credits affected by the COVID-19 pandemic. The regulation mandates specific provisioning requirements, including a minimum 3% generic provision, and defines strict criteria for the reclassification and restructuring of these loans. It also extends the deadline for financial relief measures to September 30, 2021, while prohibiting automatic grace periods and ensuring enhanced transparency and client protection.
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