ASFI Circular Letter DNP CC-2785 2020 of April 6, 2020

La Paz, April 6, 2020
ASFI Circular Letter/DNP/CC-2785/2020

Gentlemen
Present

REF: PROCEDURE NO. T-2107824768
DEFERRAL OF CREDIT AMORTIZATIONS

Gentlemen:

Within the framework of what is established in Article 1 of Law No. 1294 Exceptional on the Deferral of Credit Payments and Temporary Reduction of Basic Service Payments and in Supreme Decree No. 4206, both dated April 1, 2020, it is instructed to Financial Intermediation Entities (EIFs) to implement the mechanism for the automatic deferral of installments corresponding to the payment of credit amortizations for principal and interest and other types of charges, under the following conditions:

The deferral will be applicable to borrowers with active credit operations (whose description is detailed in account 131 "Active Portfolio" of the Chart of Accounts for Financial Entities) as of February 29, 2020 and with the payment maturity of said amortizations in the period between March 1 and May 31 of this year.
The amortizations of credit installments, for the period indicated in the previous paragraph, will be deferred automatically and may be included, either in the final installment of the payment plan, in the months following said final installment, or in the installments that according to the schedule are paid from six (6) months after May 31, 2020, without this involving an additional burden of procedures or registrations, nor implying greater costs to the borrowers.

WDCC/VRC/AGL/Cesar Daza C.

La Paz: Central Office, Plaza Isabel La Católica No. 2507 · Tel: (591-2) 2174444 - 2431919 Fax: (591-2) 2430028 · P.O. Box No. 447 · Torres Del Poeta Condominium, Tower "A", floors 4, 5, 6 · Reyes Ortiz Street corner Federico Zuazo Gundlach Building, East Tower, Floor 3 · Tel: (591-2) 2311818 · P.O. Box No. 6118. El Alto: Consultation Center, Villa Bolívar Municipal Urbanization, Block "O" Av. Ladislao Cabrera No. 15 (Villa Adela Crossing) · Tel: (591-2) 2821464. Potosí: Consultation Center, Alonso de Ibáñez Square No. 20, El Siglo Gallery, Floor 1 · Tel: (591-2) 6230858. Oruro: Consultation Center, Guachalla Passage, Commerce Chamber Building, Floor 3, Office 307 · Tel: (591-2) 5117706 – 5112468. Santa Cruz: Departmental Office, Irala Avenue No. 585, Office 201, P.O. Box No. 1359 · Tel: (591-3) 3336288 Fax: (591-3) 3336289. Cobija: Consultation Center, Beni Street No. 042 corner Av. Lieutenant Colonel Emilio Fernández Molina, Central Neighborhood · Tel: (591-3) 8424841. Trinidad: Consultation Center, Antonio Vaca Díez Street No. 26 between Nicolás Suárez and Av. 18 de Noviembre, Central Zone · Tel/Fax (591-3) 4629659. Cochabamba: Departmental Office, Colombia Street No. 364 near 25 de Mayo Street · Tel: (591-4) 4584505 Fax: (591-4) 4584506. Sucre: Consultation Center, former ECOBOL Building, ground floor, between Ayacucho and Junín Streets S/N · Tel: (591-4) 6439777 - 6439775 - 6439774. Fax: (591-4) 6439776. Tarija: Consultation Center, Junín Street No. 0451, between April 15 and Virgilio Lema · Tel: (591-4) 6113709

Toll-free line: 800 103 103 · Website: www.asfi.gob.bo · Email: asfi@asfi.gob.bo

Within six (6) months after the last deferral, EIFs must agree with their borrowers the terms for the payment of deferred installments, which must be adapted to their possibilities, based on their economic or labor activity.

Deferred installments will not generate or accrue interest other than that previously agreed upon, nor will they imply an increase in the interest rate, nor the execution of sanctions and penalties for default, and the capitalization of deferred amounts for interest is prohibited.

The amounts corresponding to the principal of deferred installments will accrue the previously agreed interest, until the moment they are effectively paid by the clients.

The amounts for interest, of the deferred installments, cannot in turn accrue any type of interest, prohibiting compound interest.

Borrowers may pay the principal and interest amortizations in full or in part, in which case the deferral will only apply to the portion of principal or interest pending payment.
Borrowers may continue with the normal payment of their credits, without the application of the deferral of payment of the amortizations of the credit obligation, at their request, through the mechanisms enabled by EIFs for this effect.
This deferral also applies to cases of borrowers with fixed-term credits (single payment) and to those whose last installment of an amortizable loan matures in the period indicated in point 1 above, the entities being able to extend the term, under the conditions indicated in paragraph 2 of this document.
Credit card payments are also subject to this deferral, without this implying that the use of said cards is disabled.
The deferral of said amortizations will not affect the risk rating of the borrowers.

WDCC/VRC/AGL/Cesar Daza C.

Toll-free line: 800 103 103 · Website: www.asfi.gob.bo · Email: asfi@asfi.gob.bo

In the case of operations with automatic debit agreement to the borrower's accounts, such debits will not be made for the period indicated in the first paragraph, and automatic deferral must be applied. This must be communicated to the borrowers.
The deferred amounts will be accounted for in the subaccounts of the Chart of Accounts for Financial Entities, detailed below:

a. 131.50 "Deferred Loans" (For the deferred principal amount). b. 135.50 "Deferred Reprogrammed or Restructured Deferred Loans" (For the deferred principal amount).
c. 138.50 "Accrued Products to be Collected from Deferred Loans" (For the deferred interest amount).
d. 138.51 "Accrued Products to be Collected from Deferred Reprogrammed or Restructured Loans" (For the deferred interest amount). e. 139.50 "Specific Provision for Uncollectability of Deferred Loans" (For the provision constituted for the deferred loan). f. 139.51 "Specific Provision for Uncollectability of Deferred Reprogrammed or Restructured Loans" (For the provision constituted for the deferred loan).

The deferrals recorded in these subaccounts will have the same weighting coefficient as the original credit operation and will not require the constitution of a specific provision.

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

Furthermore, it is clarified that what is provided in this Circular Letter, regarding the automatic deferral of installments corresponding to the payment of credit amortizations, also applies to financial leasing operations, granted both by EIFs and by Financial Leasing Companies, and the corresponding adjustments must be made in the accounting records.

WDCC/VRC/AGL/Cesar Daza C.

Toll-free line: 800 103 103 · Website: www.asfi.gob.bo · Email: asfi@asfi.gob.bo

Finally, what was instructed in ASFI Circular Letters DNP/CC-2598/2020, ASFI/DNP/CC-2633/2020 and ASFI/DNP/CC-2715/2020 of March 19, 20 and 24, 2020, respectively, is left without effect.

Sincerely.

Lic. Gonzalo Guillermo Romano Rivero
EXECUTIVE GENERAL DIRECTOR a.i.
Supervisory Authority of the Financial System

WDCC/VRC/AGL/Cesar Daza C.

Toll-free line: 800 103 103 · Website: www.asfi.gob.bo · Email: asfi@asfi.gob.bo

ASFI Circular Letter DNP CC-2785 2020 of April 6, 2020

Lineage: Superseded

Timeline