ASFI Circular Letter DNP CC-2598 2020 of March 19, 2020

[Logo: ASFI - FINANCIAL SYSTEM SUPERVISION AUTHORITY - PLURINATIONAL STATE OF BOLIVIA]

La Paz, March 19, 2020
CIRCULAR LETTER/ASFI/DNP/CC-2598/2020

To Whom It May Concern

Present

REF: PROCEDURE NO. T-2107824768
FINANCIAL MEASURES FOR NATIONAL HEALTH EMERGENCY

Gentlemen:

Within the framework of what is established in Paragraph I of the Third Additional Provision of Supreme Decree No. 4196 of March 17, 2020, regarding the flexibility and rescheduling of obligations and the attributions of this Financial System Supervision Authority (ASFI), it is instructed that Financial Intermediation Entities (FIEs) implement a mechanism for the deferral of credit payments for borrowers whose economic or labor activities are affected by the health emergency situation the country is experiencing, which prevents the fulfillment of their credit payment obligations, under the following conditions:

1. The deferral will be applicable to borrowers with active credit operations as of February 29, 2020, and with installment payment due dates in the period between March 15 and May 15, 2020.

2. The amounts corresponding to the installments of the credit obligations, for the period indicated in the previous item, will be deferred and included in the final installment of the payment plan or in subsequent months, depending on the type of contract, so as not to generate an additional burden of procedures or registrations.

[Signature: VDC/PAS/VRC/Cesar Daza C.]

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[Logo: ASFI - FINANCIAL SYSTEM SUPERVISION AUTHORITY - PLURINATIONAL STATE OF BOLIVIA]

It should be noted that the deferred amounts will not generate any type of additional financial charge (interest or other surcharges). It is pointed out that borrowers may pay these capital and interest installments in full or in part, in which case the deferral will only apply to the portion of capital or interest pending payment.

3. The deferred installments will be accounted for in the detailed sub-accounts below:
   a. 131.50 "Deferred Loans" (For the amount of deferred capital). b. 138.50 "Accrued Products to be Collected from Deferred Loans" (For the amount of deferred interest).
   c. 139.50 "Specific Provision for Uncollectability of Portfolio due to Deferred Loans" (For the provision constituted for the deferred loan).

   Deferrals registered in these sub-accounts will have the same weighting coefficient as the original credit operation and will not require the constitution of a specific provision.

4. The deferral of the respective installments will not affect the risk rating of the borrowers.

5. FIEs, at the initiative of either party, may facilitate the payment of the deferred amounts, within the term agreed upon with their clients, which will be determined based on their possibilities, when their economic or labor activity is re-established.

6. FIEs will prioritize attending to micro, small, and medium borrowers, as well as those debtors from the tourism and transport sectors in general, which does not imply restricting the attention of other types of borrowers and sectors.

7. To access this mechanism, FIEs will conduct an evaluation of their borrowers, case by case and at their request. The request may be made in person or remotely. FIEs will communicate to their clients the means of communication available to them. FIEs must also contact their clients before the due date of their installments, as they do regularly, informing them of the scope of said mechanism.

[Signature: VDC/PAS/VRC/Cesar Daza C.]

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[Logo: ASFI - FINANCIAL SYSTEM SUPERVISION AUTHORITY - PLURINATIONAL STATE OF BOLIVIA]

Additionally, it should be noted that FIEs are authorized to carry out rescheduling or adopt other solution measures for their debtors such as grace periods and others that contemplate accessible conditions, at the request of their clients.

Sincerely,

[Signature: Lic. GONZALO GUILLERMO ROMANO RIVERO, EXECUTIVE GENERAL DIRECTOR a.i., Financial System Supervision Authority]

[Seal: PLURINATIONAL STATE OF BOLIVIA, Financial System Supervision Authority]

[Signature: VDC/PAS/VRC/Cesar Daza C.]

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