Regulatory Alerts2020-04-29 | ASFI/CC-2842/2020Added · Updated
ASFI Circular Letter DNP CC-2842 2020 of April 29, 2020
SME Banks, Development Financial Institutions, Savings and Credit Cooperatives, and Housing Financial Entities must grant credits under the Special Support Program for Micro, Small, and Medium-Sized Enterprises exclusively to these entrepreneurs. Loans are capped at Bs115,000 for medium enterprises, Bs75,000 for small enterprises, and Bs35,000 for micro enterprises, with annual interest rates of 6%, 7%, and 11.5% respectively. Credits must have a term of up to five years with a grace period of six months to one year, and funds are sourced from lines subscribed by the Productive Development Bank. Financial intermediation entities must adapt credit analysis processes based on borrower information available as of February 29, 2020, and maintain standard monitoring and risk management during the program's validity.
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La Paz, April 29, 2020 CIRCULAR LETTER/ASFI/DNP/CC-2842/2020
To Whom It May Concern
Present
REF: PROCEDURE NO. T-2005827846 SPECIAL SUPPORT PROGRAM FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES
Gentlemen:
Within the framework of what is established in Supreme Decree No. 4216 of April 14, 2020, regarding the Special Support Program for Micro, Small, and Medium-Sized Enterprises and the Emergency Plan for Employment Support and Labor Stability, and in Ministerial Resolution No. 159 of April 21, 2020, from the Ministry of Economy and Public Finance, which approves the Regulations for the Special Support Program for Micro, Small, and Medium-Sized Enterprises, SME Banks, Development Financial Institutions, Savings and Credit Cooperatives, and Housing Financial Entities must grant credits under this program exclusively to Micro, Small, and Medium-sized entrepreneurs, with the purpose of ensuring resources to safeguard employment sources, business functioning, continuity, and operations, under the following conditions:
- For a term of up to five (5) years, with a grace period of six (6) months up to one (1) year.
- For a maximum amount of Bs115,000 (One Hundred Fifteen Thousand 00/100 Bolivianos), per borrower, applying the interest rates set forth in Article 5 of Supreme Decree No. 2055 of July 9, 2014, based on the type of enterprise:
VRC/AGL/Cesar Daza C. Page 1 of 3
| Type of Enterprise | Maximum Credit Amount (Bs) | Annual Interest Rate (%) |
|---|---|---|
| Medium | 115,000 | 6 |
| Small | 75,000 | 7 |
| Micro | 35,000 | 11.5 |
- Considering the criteria provided in items 2) and 3) of Article 2, Section 2 of the Regulations for the Evaluation and Classification of Credit Portfolios, contained in Chapter IV, Title II, Book 3 of the Compilation of Norms for Financial Services, for the determination of SME Credits and Microcredits.
- Destined for the micro, small, and medium productive unit and for the sectors of commerce and services complementary to the country's productive activity, including the tourism sector and intellectual production.
- The aforementioned Financial Intermediation Entities (FIEs) will adapt their credit analysis and evaluation processes based on the availability of information for each borrower as of February 29, 2020, given that Supreme Decree No. 4196 of March 17, 2020, declares a national health emergency and quarantine throughout the territory of the Plurinational State of Bolivia against the outbreak of the Coronavirus (COVID-19), determining in Paragraph I of its Third Additional Provision the establishment of mechanisms for the flexibility of obligations.
- Such FIEs must carry out the monitoring they normally perform in their credit operations, as well as their credit risk management, during the validity of the Program.
The resources for the granting of these credits will come from the Credit Lines that the Productive Development Bank (BDP) subscribes with SME Banks, Development Financial Institutions, Savings and Credit Cooperatives, and Housing Financial Entities. The Credit Line Contracts that the BDP subscribes with each of these entities will be for a term of six (6) years, with a grace period of up to eighteen (18) months.
VRC/AGL/Cesar Daza C. Page 2 of 3
For this purpose, this Financial System Supervision Authority will instruct the BDP to make the corresponding allocation of funds to the aforementioned FIEs, based on the following criteria:
- Portfolio granted to SME and micro-enterprises in Bolivianos.
- Number of credit operations for SME and micro-enterprises.
- Portfolio with 100% weighting that the entity can place while maintaining at least a 11% Capital Adequacy Ratio (CAP).
- Number of financial service points classified as head offices, branches, or agencies.
- Number of employees.
- Number of municipalities in which the entity is present.
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]