Regulatory Alerts2014-05-19 | CD-SIBOIF-830-2-ABR11-2014Added · Updated
Regulation Reforming Articles 5, 14, and 15, and Annex 1 of the Regulation on Financing Granted by General Warehouses and Assets Acquired in Recovery
The Superintendence of Banks and Other Financial Institutions reformed Articles 5, 14, and 15, and Annex 1 of the Regulation on Financing Granted by General Warehouses and Assets Acquired in Recovery. Article 5 mandates 100% provisioning for overdue documented credits and requires immediate provisioning for clients declared insolvent, bankrupt, or with unknown domiciles. Article 14 establishes that adjudicated real estate must be evaluated at least every three years, while movable assets require semi-annual evaluations. Article 15 requires independent appraisals for real estate assets exceeding US$25,000 and updates Annex 1 to specify the legal and economic information General Warehouses must collect from natural and legal entity debtors.