Regulatory Alerts2012-04-14
Added · Updated
Instruction No. 003 on the Classification and Provisioning of Credits for Savings and Credit Cooperatives and Microfinance Institutions
This instruction mandates Savings and Credit Cooperatives and Microfinance Institutions to classify credits as either healthy or disputed, defining disputed credits to include prorogued, unpaid, doubtful, contentious, and irrecoverable loans. It establishes a monthly provisioning schedule for disputed credits based on the duration of payment delays, ranging from 5% for delays of 1-30 days to 100% for delays exceeding 180 days. Non-compliance with these provisioning levels triggers a monthly penalty equal to 1% of the shortfall, effective January 1, 2013.
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