Regulatory Alerts2011-07-20
IBA Circular No. 5 of 2011 - Requirements for Assets Acquired for Sale
The Central Bank of Belize issued IBA Circular No. 5 of 2011 to prohibit licensed banks from acquiring assets for sale from borrowers in exchange for settling indebtedness. For assets acquired prior to this circular, banks must classify them as fully impaired within 30 days and recognize 100% provisions as a charge to income. Subsequent sales of these assets must be recorded as income in the period of sale and cannot be financed by the bank without prior written approval from the Central Bank.
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