Instruction No. 10/2023

Instruction No. 10/2023
Official Gazette No. 4/2023 3rd Supplement • 2023/04/28
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Topics
Supervision :: Behavioral Supervision
Mod. 99999940/T – 01/14

Index
Text of the Instruction
Text of the Instruction
Subject: Amendment of Bank of Portugal Instruction No. 16/2021

Bank of Portugal Instruction No. 16/2021 establishes the information requirements that institutions must report on the implementation of the procedures provided for in the Action Plan for Default Risk (“PARI”) and the Extrajudicial Procedure for Regularization of Default Situations (“PERSI”), as well as the communication model they must observe for this purpose.

Following the entry into force of Decree-Law No. 80-A/2022, of November 25, it is necessary to ensure that institutions report to the Bank of Portugal information on the procedures provided for in the PARI initiated as a result of the implementation of the mechanisms provided for in the aforementioned legal instrument.

Through this Instruction, the description associated with code H03 of Table H of Annex I of the communication model attached as an annex to Instruction No. 16/2021 is amended, which shall be used to identify the procedures provided for in the PARI initiated in compliance with obligations provided for in special regimes approved by the legislator, such as the PARI procedures initiated following the implementation of the provisions of Decree-Law No. 80-A/2022, of November 25.

The issuance of this Instruction was preceded by a procedure for hearing interested parties, in accordance with the provisions of Article 100 of the Administrative Procedure Code.

Thus, the Bank of Portugal, using the powers attributed to it by paragraph 3 of Article 33 of Decree-Law No. 227/2012, of October 25, as well as by Article 8 of Decree-Law No. 80-A/2022, of November 25, determines the following:

Instruction No. 10/2023 Official Gazette No. 4/2023 3rd Supplement • 2023/04/28 Topics Supervision :: Behavioral Supervision
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Mod. 99999940/T – 01/14

1. Object
   This Instruction amends Bank of Portugal Instruction No. 16/2021, published in the 5th Supplement of Official Gazette No. 11/2021, of December 10 (“Instruction No. 16/2021”), which establishes the information requirements that institutions must report on the implementation of the procedures provided for in the Action Plan for Default Risk (“PARI”) and the Extrajudicial Procedure for Regularization of Default Situations (“PERSI”), as well as the communication model they must observe for this purpose.

2. Amendment to Annex I of Instruction No. 16/2021
   Table H of Annex I of the communication model attached as an annex to Instruction No. 16/2021 shall have the following wording:

Table H – Reason for initiation of PARI
Reason for initiation of PARI Code
Communication by the client of facts indicating the risk of default H01 Detection of signs of default risk by the institution – Default on other credit contracts, inclusion in the list of users of checks that pose a risk, tax or social security debts, insolvency, judicial processes or seizure of bank accounts, unemployment, loss of income, or performance of the sector of activity in which the banking client carries out their professional activity, among others H02 Compliance with an obligation arising from a special legal regime H03 Other reasons H04

3. Entry into force
   This Instruction enters into force the day following its publication.