Resolution Amending the Standard on Credit Risk Management

Page 1 of 2 Resolution No. CD-SIBOIF-1078-1-OCT25-2018 Dated October 25, 2018 STANDARD AMENDING THE STANDARD ON CREDIT RISK MANAGEMENT

The Board of Directors of the Superintendence of Banks and Other Financial Institutions, after deliberations on the matter,

CONSIDERING

I That on August 20, 2008, the Standard on Credit Risk Management was issued, contained in Resolution No. CD-SIBOIF-547-1-AGOST20-2008, published in La Gaceta, Official Newspaper No. 176 and 178, on September 11 and 17, 2008; with the aim of establishing, among other aspects, the minimum guidelines to regulate the evaluation and classification of risk assets of financial institutions.

II That based on the authority granted by article 3, items 3) and 13), of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions, published in La Gaceta No. 196 on October 14, 1999, and its amendments, contained in Law No. 974, Law of the Nicaraguan Legal Digest on Banking and Finance, published in La Gaceta, Official Newspaper No. 164, on August 27, 2018, and its amendments; it is appropriate to establish temporarily an exceptional exemption in the timeframe for valuing real estate assets received in payment or adjudicated as referred to in article 42 of the aforementioned Standard on Credit Risk Management.

In exercise of its powers,

HAS ISSUED

The following: Resolution No. CD-SIBOIF-1078-1-OCT25-2018 STANDARD AMENDING THE STANDARD ON CREDIT RISK MANAGEMENT

Page 2 of 2 FIRST: Add article 52-bis to the Standard on Credit Risk Management, contained in Resolution No. CD-SIBOIF-547-1-AGOST20-2008, published in La Gaceta, Official Newspaper No. 176 and 178, on September 11 and 17, 2008, such that it reads as follows:

“Article 52-bis. Transitional.- The appraisals of real estate assets received in payment or adjudicated as referred to in article 42 of this standard, which expire during the period from October 1, 2018, to March 31, 2019, are suspended for a period of six (6) months. Once the aforementioned period has elapsed, financial institutions must update the appraisals of these assets within the month immediately following the end date of the suspension period.”

SECOND: This standard shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Newspaper. (Signed) S. Rosales C. (Signed) V. Urcuyo V. (Signed) Fausto Reyes B. (Signed) Illegible (Silvio Moisés Casco Marenco) (Signed) Illegible (Rafael Ángel Avellán Rivas)

RAFAEL ÁNGEL AVELLÁN RIVAS Secretary of the Board of Directors SIBOIF