Regulatory Alerts2014-05-15 | CD-SIBOIF-830-1-ABR11-2014Added · Updated
Resolution Reforming Articles 4, 7, 8, and 9 and the Annex of the Standard on Evaluation of Accounts Receivable Balances and Assets Acquired in Recovery by General Warehouses
The Board of Directors of the Superintendence of Banks and Other Financial Institutions amends Articles 4, 7, 8, and 9, and the Annex of the Standard on Evaluation of Accounts Receivable Balances and Assets Acquired in Recovery by General Warehouses. The reform establishes provisioning percentages of 50%, 70%, and 100% for receivables aged 90-120, 120-150, and over 150 days respectively, while allowing immediate 100% provisioning for insolvent or unknown-domicile clients. It mandates real estate asset evaluations at least every three years and requires independent appraisals for properties exceeding US$25,000, aligning valuation criteria with International Accounting Standard 16. The standard enters into force upon notification.