Resolution No. CD-SIBOIF-757-3-NOV23-2012
Dated 23 November 2012

REFORM STANDARD OF ARTICLE 24 OF THE STANDARD ON CREDIT RISK MANAGEMENT

The Board of Directors of the Superintendency of Banks and Other Financial Institutions, after deliberations thereon,

WHEREAS

SOLE

That based on the power granted by article 3, numerals 3 and 13, and article 10, numeral 7, of Law 316, Law of the Superintendency of Banks and Other Financial Institutions, and its reforms contained in Law 552, Law of Reforms to the aforementioned Law 316;

In exercise of its powers,

HAS ISSUED

The following,

Resolution No. CD-SIBOIF-757-3-NOV23-2012 REFORM STANDARD OF ARTICLE 24 OF THE STANDARD ON CREDIT RISK MANAGEMENT

FIRST: Reform article 24 of the Standard on Credit Risk Management, contained in Resolution No. CD-SIBOIF-547-1-AGOST20-2008, of 20 August 2008, published in La Gaceta, Official Gazette No. 176 and 178, of 11 and 17 September 2008, which shall read as follows:

Art. 24 Maximum value applicable to eligible liquid guarantees as risk mitigants.- The maximum value applicable to eligible liquid guarantees as risk mitigants shall be as follows:

ELIGIBLE GUARANTEE AS RISK MITIGANT	VALUATION	MAXIMUM APPLICABLE VALUE
Government securities.	Market value	90% for all government securities, except for those securities, physical or dematerialized, issued by the Government that are held in custody or recorded in account at the Central Bank of Nicaragua, in which case they shall have a value of 100%.
Term deposit certificates, bank guarantees, sureties, Stand By letters of credit and any other liquid instrument, guaranteed, accepted or secured by financial institutions of the country, or by foreign financial institutions qualified as first-rate.	Nominal value	100%
Securities (Bonds, commercial paper and shares) issued by foreign financial institutions with widely held share capital whose shares are traded on a stock exchange or regulated market and are qualified as first-rate.	Market value	1) 80% fixed income 2) 70% variable income
Securities issued by the central bank or ministry of finance of States with a first-rate country risk rating.	Market value	90%
Debt and equity securities of companies with widely held share capital whose shares are traded on a stock exchange or regulated market and whose issues are qualified as first-rate investments.	Market value	1) 80% fixed income 2) 70% variable income

In the event that a given security does not have an active and liquid market, the valuation shall be determined in accordance with the provisions of the regulations governing the matter of portfolio valuation.

SECOND: This standard shall enter into force upon its notification without prejudice to its publication in the Official Gazette, La Gaceta.

Engineer Gabriel Pasos Lacayo abstained from voting on what was resolved in this agenda item. This resolution is approved by majority.
At one forty minutes in the afternoon, this session is declared closed.
(f) Ovidio Reyes R. (f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) Fausto Reyes B. (f) illegible (Silvio Moisés Casco Marenco) (f) illegible (Freddy José Blandon Argeñal) (f) Antonio Morgan P. Ad Hoc Secretary.”

URIEL CERNA BARQUERO
Secretary Board of Directors SIBOIF