CARTA CIRCULAR/ASFI/DNP/CC-8200/2020

La Paz, December 7, 2020

To Whom It May Concern

Present

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

Gentlemen:

Within the framework of what is established in Exceptional Law No. 1294 on the Deferral of Credit Payments and Temporary Reduction of Basic Service Payments, Law No. 1319 of August 25, 2020, and Supreme Decrees No. 4206, No. 4248, No. 4318, and No. 4409 of April 1, May 28, August 31, and December 2, 2020, respectively, Financial Intermediation Entities (EIFs) are instructed to comply with the mandatory automatic deferral of installments corresponding to the payment of credit amortizations for principal and interest and other charges, taking into account the following aspects for this purpose:

The deferral will be applicable to borrowers with active credit operations as of February 29, 2020, whose description is detailed in account 131 "Active Portfolio" of the Chart of Accounts for Financial Entities (MCEF), for the period between March and December 2020, in accordance with what is provided in the aforementioned legal and regulatory provisions.
Deferred installments will not generate or accrue extraordinary or additional interest; the interest rate cannot be increased, nor will any sanctions or penalties of any kind be executed, with compound interest being prohibited.

The amounts corresponding to the interest accrued on the principal of the deferred installments will remain unchanged; the deferred principal cannot generate any type of additional financial burden, nor higher interest for this concept.

JQR/JCG/AGL/VRC/JZU/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, Vi la Bolivar Municipal Urbanization, Block "O" Av. Ladislao Cabrera No. 16 (Villa Adela Crossing) · Tel. (591-2) 2834449 · Potosí: Consultation Center, Plaza Alonso de Ibáñez No. 20, Galería El Siglo, Floor 1, Central Zone · Tel. (591-2) 6230858 · Oruro: Consultation Center, Guachalla Passage, Chamber of Commerce Bldg., Floor 3, Office 307 · Tel. (591-2) 5117706 - 5112468 · Santa Cruz: Departmental Office, Av. Irala No. 585 corner Av. Ejército Nacional, ground floor Office No. 2 and Floor 2 Office No. 201, First Ring, P.O. Box No. 1359 · Tel. (591-3) 3336288 - 3336287 - 3336286 - 3336285 · Fax (591-3) 3336288 · Cobija: Consultation Center, Av. Teniente Coronel Emilio Fernández Molina No. 049, between Beni and Sucre Streets · Tel. (591-3) 8424841 · Trinidad: Consultation Center, Antonio Vaca Díez Street No. 26 between Nicolás Suárez and November 18 Avenue, Central Zone · Tel. (591-3) 4629659 · Cochabamba: Departmental Office, Colombia Street No. 364 near May 25 Street · Tel. (591-4) 4584505 - (591-4) 4584506 · Sucre: Consultation Center, Ayacucho street between Loa and Junín, ground floor (ex) ECOBOL Building · Tel. (591-4) 6439777 - 6439775 - 6439774 · Fax (591-4) 6439776 · Tarija: Consultation Center, Junín Street between April 15 and Virgilio Lema No. 451 · Tel. (591-4) 6113709

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

The deferral of installments does not imply additional costs for borrowers.
Borrowers with sufficient payment capacity may continue with the normal payment of their credits, at their request, through the mechanisms enabled by the EIFs.
The EIFs will collect the installments that were deferred, after the final installment of the credit payment plan, maintaining the previously agreed payment periodicity.
Deferred installments will be accounted for in accordance with what is established in the MCEF.
The EIFs, upon concluding the deferral period, must agree with borrowers, based on their economic situation and payment capacity, the refinancing or restructuring of the credit operations whose installments were deferred.

For the structuring of the aforementioned restructurings or refinancings, the EIFs are authorized to adapt their credit analysis and evaluation processes, being able to incorporate cash flow projections in the evaluation of their borrowers' payment capacity.

In cases where the aforementioned credit operations have a residual term of up to two (2) years, the restructuring will be structured for a period not exceeding five (5) years.

Likewise, for the application of the aforementioned deferral, the EIFs must take into account the following:

a. The automatic deferral of installments corresponding to the payment of credit amortizations for principal and interest and other charges will not affect the risk classification of borrowers.

b. The deferrals recorded in the subaccounts provided for in the MCEF will have the same weighting coefficient as the original credit operation, taking into account for the provisioning regime what is established in Article 11°, Section 10 of the Regulation for the Evaluation and Classification of Credit Portfolios, contained in Chapter IV, Title II, Book 3° of the Compilation of Norms for Financial Services.

c. The EIFs must deliver to borrowers the payment plans corresponding to their credit operations, detailing the installments that were deferred as established in items 2 and 5 of this Circular Letter,

JQR/JCG/AGL/VRC/JZU/Cesar Daza C.

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

d. EIFs are prohibited from forcing their clients to make payment of the deferred installments before the period established in the current legal and regulatory provisions, or to make extraordinary charges for the application of the cited deferral.

Additionally, it corresponds to the EIFs to evaluate other solution measures for borrowers whose payment capacity has deteriorated, considering accessible conditions that allow them to comply with their credit obligations.

On the other hand, it is clarified that what is established 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 the EIFs and by Financial Leasing Companies, with the corresponding adjustments to be made.

Finally, what was instructed in ASFI Circular Letters ASFI/DNP/CC-2785/2020, ASFI/DNP/CC-3006/2020, ASFI/DNP/CC-4737/2020, and ASFI/DNP/CC-5929/2020 of April 6, May 29, September 1, and October 6, 2020, respectively, is hereby repealed.

Sincerely.

Lic. Reynaldo Yujra Segales
GENERAL DIRECTOR EXECUTIVE a.i.
Supervisory Authority of the Financial System

[Signature]

PLURINATIONAL STATE OF BOLIVIA
Supervisory Authority of the Financial System

JQR/JCG/AGL/VRC/JZU/Cesar Daza C.

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

ASFI Circular Letter DNP CC-8200 2020 of December 7, 2020

CARTA CIRCULAR/ASFI/DNP/CC-8200/2020

To Whom It May Concern

Lineage: In force

Timeline