Regulatory Alerts2020-09-23
Agreement No. 9 (2020) Modifying Agreement No. 2-2020 on Credit Risk Measures
The Panama Banking Superintendence issued Agreement No. 9 (2020) to modify temporary measures for credit risk management in response to the COVID-19 pandemic. The regulation establishes a new "Special Mention Modified" classification for affected loans, mandates specific provisioning requirements combining IFRS and prudential standards, and defines clear timelines for restoring loans to normal status. It further requires banks to disclose qualitative and quantitative data regarding modified credits in their annual audited financial statements.
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