Norm for Establishing Special Conditions for Debt Renegotiation

Page 1 of 5 Resolution No. CD-SIBOIF-1057-1-MAY29-2018 Dated May 29, 2018

NORM FOR THE ESTABLISHMENT OF SPECIAL CONDITIONS FOR THE RENEGOTIATION OF DEBTS

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I That in accordance with what is established in Article 10, numeral 1) of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions, published in La Gaceta, Official Gazette No. 196, of October 14, 1999, and its reforms, it corresponds to the Board of Directors of the Superintendence of Banks and Other Financial Institutions to issue general norms to strengthen and preserve the security and confidence of the public in institutions under the supervision, inspection, surveillance, and audit of the Superintendence.

II That based on the authority established in the preceding consideration and with the aim of mitigating the negative effects that could be generated by the events that occurred in the country since the past month of April of the current year, it is appropriate to adopt extraordinary immediate measures that mitigate the aforementioned negative effects and allow the rehabilitation of activities that generate cash flows and the orderly recovery of loans granted by financial institutions to said activities.

III That according to the considerations previously stated and based on the authority established in Article 3, numerals 3 and 13, and Article 10, numeral 7, of the aforementioned Law 316, Law of the Superintendence of Banks and Other Financial Institutions, and its reforms.

In exercise of its powers,

HAS ISSUED

The following,

CD-SIBOIF-1057-1-MAY29-2018

NORM FOR THE ESTABLISHMENT OF SPECIAL CONDITIONS FOR THE RENEGOTIATION OF DEBTS

CHAPTER I GENERAL PROVISIONS

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Article 1. Purpose.- 1 The purpose of this norm is to establish special temporary relief conditions for debtors, allowing them to adequately meet their obligations in the face of potential or actual deterioration of their payment capacity, as a result of the events that occurred in the country since the past month of April of the current year.

Article 2. Scope.- The provisions of this norm are applicable to banks, financial companies, and insurance companies, which for the purposes of this norm will be referred to as "financial institutions."

CHAPTER II SPECIAL CONDITIONS

Article 3. Special credit conditions.- 2 Financial institutions may modify the conditions originally agreed upon in credit contracts or perform debt consolidations, for residential mortgages, microcredit, commercial loans, and consumer loans, excepting in the latter case credit cards and extra financing, without these adjustments being considered as a restructuring under the terms of Article 36 of the regulation governing credit risk management, to those debtors whose loans as of March 31, 2018, have a risk rating of "A" or "B" and are in active status, as well as those granted within the period of the month of April 2018. These modifications may be made upon formal request by the debtor. These loans will have the following characteristics:

a) They will be granted only to debtors who have demonstrated good payment behavior and who show evidence of having been directly or indirectly affected by the events that occurred in the country since the past month of April of the current year.

b) The new conditions must adhere to financial viability criteria, taking into account the risk analysis and the debtor's payment capacity.

c) The loans modified in accordance with what is established in this article will retain the same risk category and accounting record they had as of March 31, 2018, and those granted within the period of the month of April 2018. However, if the debtor fails to comply with the new agreed conditions, the financial institution must reclassify the loan in accordance with what is established in the regulation governing credit risk management, potentially improving its credit classification once the conditions indicated in the aforementioned regulatory framework are met, depending on the type of loan.

d) Each financial institution must determine the requirements for applying the conditions established in this norm, demonstrating compliance with what is stated in letter a) of this article, and that as of March 31, 2018, it held the risk rating referred to in the first paragraph of this article and those granted within the period of the month of April 2018.

1 Article 1 modified on June 26, 2018, by Resolution No. CD-SIBOIF-1061-1-JUN26-2018 2 Article 3 modified on June 26, 2018, by Resolution No. CD-SIBOIF-1061-1-JUN26-2018

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For the purposes of this norm, debts from credit cards and extra financing will not be subject to restructurings, consolidations, extensions, or refinancing.

Article 4. Extensions for consumer, residential mortgage, microcredit, and commercial loans.- During the period referred to in Article 9 of this norm, financial institutions may extend consumer loans (excepting credit cards and extra financing), residential mortgages, microcredit, and commercial loans that as of March 31, 2018, were classified in category "A" or "B," as well as those granted in the month of April 2018, under the terms established in Article 35 of the regulation governing credit risk management; therefore, for the purposes of this norm, what is established in letter a) and the last paragraph of the same shall not apply.

Loans extended by virtue of this article may subsequently be subject to the special conditions of Article 3 of this norm, maintaining the rating they had on the day of the extension.

Article 5. Restriction and maintenance of provisions.- The special relief conditions indicated in the preceding Articles 3 and 4 may benefit the customer for each loan only once within the same supervised institution, and the application of the relief mechanisms indicated in this norm will not imply for financial institutions a decrease or liberalization of the provisions already constituted for the loans that benefit from the mechanism provided in this norm.

Article 6. Monitoring.- Financial institutions must have information systems that allow for the identification and monitoring of modified loans, including their risk rating, and establish specific policies and procedures approved by their Board of Directors for the management and monitoring of requests for modification of the conditions of these loans, in accordance with the previously described criteria.

Article 7. Authorization.- 3 For the purposes of verifying compliance with the provisions contained in this norm, financial institutions, prior to the approval of the new credit conditions, must obtain the non-objection of the Superintendent; for such purposes, they must deliver to the Superintendence a report justifying the reasons for the new conditions in accordance with the provisions of this norm.

CHAPTER III FINAL PROVISIONS

Article 8. Information to the Superintendence.- Financial institutions must send to the Superintendence within the first five (5) business days after the close of each month, a detail of the debtors to whom they have applied these temporary relief mechanisms, during the month in which it was carried out, detailing the minimum information required in

3 Article 7 modified on June 4, 2018, by Resolution No. CD-SIBOIF-1058-1-JUN4-2018

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the Annex that forms an integral part of this norm. Said Annex must be sent electronically.

With the purpose of keeping the credit history of debtors of financial institutions up to date, based on the information referred to in the previous paragraph, the Superintendence will identify in the Central Risk Registry those debtors who have benefited from the relief conditions contained in this norm.

Article 9. Maximum deadline for applications.- The applications of affected debtors will have the maximum presentation date to financial institutions until December 31, 2018.

Article 10. Modification of annex.- The Superintendent is authorized to modify the annex contained in this norm, to the extent that its application so requires, informing the Board of Directors about said modifications.

Article 11. Validity.- This norm will enter into force from its notification. (f) S. Rosales C. (f) V. Urcuyo (f) Gabriel Pasos Lacayo (f) Fausto Reyes (f) illegible (Silvio Moisés Casco Marenco) (f) U. Cerna. Secretary.

URIEL CERNA BARQUERO Secretary of the Board of Directors SIBOIF

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Name of the Institution: _______________________ Figures as of: ________________________

No. id_Persona Id_tipo_documento Name of the debtor id_credito id_tipo_credito id_moneda id_situacion_credito Contract Rate (agreed) Original Amount Balance Interest id_classification Reason for loan cancellation id_credito id_credito_anterior id_tipo_credito id_moneda Balance id_classification Contract Rate (agreed) Term (months) Extension_term (days) id_período_cobro_principal

NOTE: 1/ The fields detailed in this annex must be registered as expressed in the Transactional Manual of the CdR, with the exception of the fields: Reason for loan cancellation and Term. 2/ For the registration of these special loans, they must send to the CdR in the Observations field the mark "CERA" (Special Conditions for debt renegotiation). 3/ The id_credito_anterior corresponds only to restructured loans. 4/ The field extension_term applies only to extended loans.

Figures in Córdobas

ANNEX INFORMATION ON CREDITS OF BENEFITED DEBTORS (New Loans / Extended Loans of the Month) Cancelled Loans New Loan / Extension