Resolution SBS No. 2165-2022: Establishes Prudential and Accounting Treatment for Reprogrammed Credits under Decree of Urgency No. 011-2022 and the REACTIVA PERÚ Program

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 1 Lima, July 11, 2022 S.B.S. Resolution No. 02165-2022 The Superintendent of Banking, Insurance and Private Pension Fund Administrators

CONSIDERING:

That, through SBS Resolution No. 11356-2008 and its amendments, the Regulation for the Evaluation and Classification of Debtors and the Requirement of Provisions was approved, in which the credit risk provision rates applicable to different types of credit are established, based on the credit classification of debtors;

That, through SBS Resolution No. 14354-2009 and its amendments, the Regulation for the Requirement of Effective Equity for Credit Risk was approved, in which the methodology to be applied, as well as the requirements that financial system companies must meet to calculate the effective equity requirement for credit risk using the standard method or the internal ratings-based method, are established;

That, through SBS Resolution No. 895-98 and its amendments, the Accounting Manual for Financial System Companies was approved;

That, through Supreme Decree No. 016-2022-PCM, a National State of Emergency was declared due to circumstances affecting the life and health of people as a consequence of COVID-19, which has been extended by Supreme Decree No. 076-2022-PCM;

That, through Legislative Decree No. 1455-2020 and its amendments, the creation of the National Government Guarantee Program for Continuity in the Payment Chain (REACTIVA PERÚ Program) was ordered, which aims to guarantee the financing for the replacement of working capital funds of companies facing short-term payments and obligations with their workers and suppliers of goods and services, through a mechanism that grants the National Government guarantee to national currency credits placed by financial system companies, and through Ministerial Resolution No. 134-2020-EF/15 and amendments, the operational regulation of said Program was approved;

That, through SBS Resolution No. 1314-2020, it was ordered that, exceptionally, to the part of the credits that have coverage of the guarantee of the REACTIVA PERÚ Program, a credit risk provision rate of 0% is applicable when credit counterparty substitution is applied;

That, likewise, through SBS Resolution No. 1546-2020, it was ordered that to the part of the credits that have the guarantee of the REACTIVA PERÚ Program, when credit counterparty substitution is applied, they be excluded from the calculation of the provisions indicated in the first and third paragraphs of article 7 of the Regulation for the Administration of the Risk of Over-indebtedness of Retail Debtors, as well as from the additional provisions indicated in article 7 of the Regulation for the Administration of Credit Exchange Rate Risk; and that through SBS Resolution No. 3155-2020 the application of article 7 of the Regulation for the Administration of the Risk of Over-indebtedness of Retail Debtors, approved through SBS Resolution No. 6941-2008 and its amendments, is suspended;

That, through Decree of Urgency No. 026-2021 and its amendment, measures in the economic and financial matter destined to the reprogramming of credits guaranteed with the REACTIVA PERÚ Program were established; and through Ministerial Resolution No. 119-2021-EF/15 the operational regulation of the Reactiva Perú Program is adapted to what is established in said Decree of Urgency;

That, through SBS Resolution No. 1333-2021, it was ordered that to the part of the reprogrammed credits that have coverage of the REACTIVA PERÚ Program, the same treatment established for the part of the credits that have coverage of the National Government Guarantee Program for Continuity in the Payment Chain is applicable, through SBS Resolutions No. 1314-2020 and No. 1546-2020;

That, subsequently, through Decree of Urgency No. 011-2022, measures in the economic and financial matter destined to the second reprogramming of credits guaranteed with the REACTIVA PERÚ Program were established; and through Ministerial Resolution No. 131-2022-EF/15 the operational regulation of the Reactiva Perú Program is adapted to what is established in said Decree of Urgency;

That, it is necessary to establish clarifications on prudential and accounting aspects that must be considered by companies for the second reprogramming of credits guaranteed with the REACTIVA PERÚ Program within the framework of Decree of Urgency No. 011-2022;

Having the approval of the Adjunct Superintendencies of Banking and Microfinance, Risks, Economic Studies and Legal Advice; and,

In exercise of the powers conferred in numbers 7, 9 and 13 of article 349 of the General Law of the Financial System and of the Insurance System and the Organic Law of the Superintendence of Banking and Insurance (Law No. 26702 and its amendments), and based on the exceptional conditions established in article 14 of Supreme Decree No. 001-2009-JUS and its amendments;

RESOLVES:

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 3 Article First.- Establish that to the part of the credits reprogrammed within the framework of Decree of Urgency No. 011-2022 that have coverage of the REACTIVA PERÚ Program, the same treatment established for the part of the credits that have coverage of the National Government Guarantee Program for Continuity in the Payment Chain is applicable, through SBS Resolutions No. 1314-2020 and No. 1546-2020.

Article Second.- Modify the Accounting Manual for Financial System Companies, approved by SBS Resolution No. 895-98 and its amendments, according to the Annex attached to this Resolution, which is published on the Institutional Portal (www.sbs.gob.pe), in accordance with what is established in Supreme Decree No. 001-2009-JUS and its amendments, with validity starting from the information corresponding to the month of July 2022.

Article Third.- This Resolution enters into force the day after its publication in the official newspaper El Peruano, except for what is established in the second article.

Register, communicate and publish

MARIA DEL SOCORRO HEYSEN ZEGARRA Superintendent of Banking, Insurance and AFP

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 4 ANNEX MODIFICATIONS TO THE ACCOUNTING MANUAL FOR COMPANIES OF THE FINANCIAL SYSTEM

I. Modify Chapters III "Chart of Accounts" and IV "Description and Dynamics of Accounts" of the Accounting Manual for Financial System Companies, in accordance with the following:

1. Substitute the description of account 8108 "CREDITS THAT PARTICIPATE IN THE REACTIVA PERÚ PROGRAM", according to the following:

ACCOUNT: 8108 CREDITS THAT PARTICIPATE IN THE REACTIVA PERÚ PROGRAM DESCRIPTION: The credits granted within the framework of the Reactiva Perú Program approved by Legislative Decree No. 1455 and its amendments and complementary norms, as well as the reprogrammations that are generated within the framework of Decree of Urgency No. 026-2021, Decree of Urgency No. 011-2022 and complementary norms, in addition to being registered in the corresponding accounts of item 14 "Credits", must be registered in this subaccount, with the counterpart being item 82 "Contra account of order debtor accounts".

The accounting in this subaccount must discriminate the part of the credit that has the National Government guarantee, from the part that does not have such guarantee; likewise, capital and interest are discriminated.

Credits granted within the framework of Legislative Decree No. 1455 and its amendments and complementary norms, must be registered in subaccounts 8108.01, 8108.05 and 8108.08.

Regarding interest and earnings, which are accounted for under the accrual basis, in addition to the registration in account 1408 "Accrued earnings from current credits" and in account 5104 "Interest on credits", they must be registered in the analytical order subaccounts named "Accrual Basis" of subaccount 8108.08. As interest is collected, these will be credited to account 1408 and the interest registered in the corresponding analytical subaccounts "Accrual Basis" of subaccount 8108.08 will be reversed, as applicable.

Regarding interest and earnings that are accounted for under the cash basis, in addition to the registration in the suspended order accounts 8104

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 5 "Earnings from credits, investments and rents in suspense" they must be registered in the analytical subaccounts denominated "Cash Basis" of subaccount 8108.08. As interest is collected, these will be recognized as income in account 5104 "Interest on credits" and the interest registered in account 8104 will be reversed, as well as the interest registered in the analytical subaccounts "Cash Basis" corresponding to subaccount 8108.08, as applicable, for the amounts effectively received.

Regarding reprogrammed credits, the following guidelines will be followed:

Credits Reprogrammed through DU 026-2021 Credits reprogrammed within the framework of Decree of Urgency No. 026-2021 and complementary norms must be registered in subaccount 8108.11 "Reprogrammed Credits – DU No. 026-2021".

Credits previously registered in subaccounts 8108.01, 8108.05 and 8108.08 that have been reprogrammed within the framework of DU No. 026-2021, will cease to be registered in the cited subaccounts and must be registered in subaccount 8108.11.

Regarding interest and earnings, which are accounted for under the accrual basis, in addition to the registration in account 1408 "Accrued earnings from current credits" and in account 5104 "Interest on credits", they must be registered in the analytical order subaccounts named "Accrual Basis" of analytical accounts 8108.11.20, 8108.11.21, 8108.11.22, 8108.11.23 and 8108.11.24, as applicable. As interest is collected, these will be credited to account 1408 and the interest registered in the analytical subaccounts "Accrual Basis" corresponding to analytical accounts 8108.11.20, 8108.11.21, 8108.11.22, 8108.11.23 and 8108.11.24, as applicable, will be reversed.

Regarding interest and earnings that are accounted for under the cash basis, in addition to the registration in the suspended order accounts 8104 "Earnings from credits, investments and rents in suspense" they must be registered in the analytical subaccounts named "Cash Basis" of analytical accounts 8108.11.20, 8108.11.21, 8108.11.22, 8108.11.23 and 8108.11.24, as applicable. As interest is collected, these will be recognized as income in account 5104 "Interest on credits" and the interest registered in account 8104, as well as the interest registered in the analytical subaccounts "Cash Basis" corresponding to analytical accounts

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 6 8108.11.20, 8108.11.21, 8108.11.22, 8108.11.23 and 8108.11.24, as applicable, for the amounts effectively received.

Unpaid accrued interest at the date of reprogramming, which were accounted for under the cash basis, will continue to be recognized under the cash basis during the term of the credit.

Credits Reprogrammed through DU 011-2022 Credits reprogrammed within the framework of Decree of Urgency No. 011-2022 and complementary norms must be registered in subaccount 8108.12 "Reprogrammed Credits – DU No. 011-2022".

Credits previously registered in subaccounts 8108.01, 8108.05, 8108.08 or 8108.11 that have been reprogrammed within the framework of DU No. 011-2022, will cease to be registered in the cited subaccounts and must be registered in subaccount 8108.12.

Regarding interest and earnings, which are accounted for under the accrual basis, in addition to the registration in account 1408 "Accrued earnings from current credits" and in account 5104 "Interest on credits", they must be registered in the analytical order subaccounts named "Accrual Basis" of analytical accounts 8108.12.20, 8108.12.21, 8108.12.22, 8108.12.23 and 8108.12.24, as applicable. As interest is collected, these will be credited to account 1408 and the interest registered in the analytical subaccounts "Accrual Basis" corresponding to analytical accounts 8108.12.20, 8108.12.21, 8108.12.22, 8108.12.23 and 8108.12.24, as applicable, will be reversed.

Regarding interest and earnings that are accounted for under the cash basis, in addition to the registration in the suspended order accounts 8104 "Earnings from credits, investments and rents in suspense" they must be registered in the analytical subaccounts named "Cash Basis" of analytical accounts 8108.12.20, 8108.12.21, 8108.12.22, 8108.12.23 and 8108.12.24, as applicable. As interest is collected, these will be recognized as income in account 5104 "Interest on credits" and the interest registered in account 8104, as well as the interest registered in the analytical subaccounts "Cash Basis" corresponding to analytical accounts 8108.12.20, 8108.12.21, 8108.12.22, 8108.12.23 and 8108.12.24, as applicable, for the amounts effectively received.

Unpaid accrued interest at the date of reprogramming, which were accounted for under the cash basis, will continue to be recognized under the cash basis during the term of the credit.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 7 2. Incorporate into account 8108, the subaccount, analytical accounts and analytical subaccounts detailed below:

8108.12 Reprogrammed Credits – DU No. 011-2022 8108.12.02 Current Credits – Microenterprise 8108.12.02.01 Credits to microenterprises with National Government guarantee 8108.12.02.02 Credits to microenterprises without National Government guarantee 8108.12.10 Current Credits – Corporate 8108.12.10.01 Corporate credits with National Government guarantee 8108.12.10.02 Corporate credits without National Government guarantee 8108.12.11 Current Credits – Large Enterprises 8108.12.11.01 Credits to large enterprises with National Government guarantee 8108.12.11.02 Credits to large enterprises without National Government guarantee 8108.12.12 Current Credits – Medium Enterprises 8108.12.12.01 Credits to medium enterprises with National Government guarantee 8108.12.12.02 Credits to medium enterprises without National Government guarantee 8108.12.13 Current Credits – Small Enterprises 8108.12.13.01 Credits to small enterprises with National Government guarantee 8108.12.13.02 Credits to small enterprises without National Government guarantee 8108.12.14 Overdue Credits – Microenterprise 8108.12.14.01 Credits to microenterprises with National Government guarantee 8108.12.14.02 Credits to microenterprises without National Government guarantee 8108.12.15 Overdue Credits – Corporate 8108.12.15.01 Corporate credits with National Government guarantee 8108.12.15.02 Corporate credits without National Government guarantee 8108.12.16 Overdue Credits – Large Enterprises 8108.12.16.01 Credits to large enterprises with National Government guarantee 8108.12.16.02 Credits to large enterprises without National Government guarantee 8108.12.17 Overdue Credits – Medium Enterprises

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 8 8108.12.17.01 Credits to medium enterprises with National Government guarantee 8108.12.17.02 Credits to medium enterprises without National Government guarantee 8108.12.18 Overdue Credits – Small Enterprises 8108.12.18.01 Credits to small enterprises with National Government guarantee 8108.12.18.02 Credits to small enterprises without National Government guarantee 8108.12.20 Earnings – Microenterprises 8108.12.20.01 Accrual Basis 8108.12.20.02 Cash Basis 8108.12.21 Earnings – Corporate 8108.12.21.01 Accrual Basis 8108.12.21.02 Cash Basis 8108.12.22 Earnings – Large Enterprises 8108.12.22.01 Accrual Basis 8108.12.22.02 Cash Basis 8108.12.23 Earnings – Medium Enterprises 8108.12.23.01 Accrual Basis 8108.12.23.02 Cash Basis 8108.12.24 Earnings – Small Enterprises 8108.12.24.01 Accrual Basis 8108.12.24.02 Cash Basis

3. Incorporate analytical account 8404.05.21 "Guarantee granted by the National Government – Reprogrammed Credits Reactiva Perú Program – DU No. 011-2022", as well as its description, according to the following:

8404.05.21 Guarantee granted by the National Government – Reprogrammed Credits Reactiva Perú Program – DU No. 011-2022

In this analytical account, the National Government guarantee of credits reprogrammed within the framework of Decree of Urgency No. 011-2022 and complementary norms, which allows the reprogramming of credits guaranteed with the Reactiva Perú Program, is accounted for.

These guarantees will cease to be registered in analytical account 8404.05.11 or 8404.05.18, and must be registered in analytical account 8404.05.21.

II. Modify Chapter V "Complementary Information" of the Accounting Manual for Financial System Companies, in accordance with the following:

1. Modify the methodological notes of Annex No. 5 "Report on Debtor Classification and Provisions", in accordance with the following:

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 9 a. Substitute methodological note 5b, according to the following text:

"5b. Indicate the portion of direct credits and the equivalent exposure to credit risk of indirect credits to which credit counterparty substitution applies, that is, when the debtor has the subsidiary responsibility of central governments and their agencies, central banks, International Monetary Fund, European Central Bank, Bank for International Settlements, multilateral development banks listed in article 16 of the Regulation for the Requirement of Effective Equity for Credit Risk, financial system companies or insurance system companies of the country and abroad, as well as other entities with Risk II according to the Regulation for the Requirement of Effective Equity for Credit Risk, instrumented in (i) joint surety bonds, (ii) guarantees, (iii) bank acceptances, iv) bail bonds, v) export credit insurance for pre and post shipment financing, (vi) letters of credit, standby letters of credit or similar guarantees, provided they are irrevocable with documents negotiated without discrepancies, (vii) credit derivatives (only total return swap and credit default swap); (viii) extended credit insurance coverage by an autonomous credit insurance equity and (ix) coverage of a guarantee fund constituted by Law or norm with the rank of law, coverage of risk of Fondo MIVIVIENDA S.A. and other similar guarantees. The amount of credits will be recorded in the column corresponding to the risk classification and the type of credit of who provides the credit protection, according to the criteria of number 2.1 of Chapter III of the Regulation for the Evaluation and Classification of the Debtor and Requirement of Provisions. Corporate – 0% Provision Rate will be considered, for the part of the credits that have coverage of the Reactiva Perú Program, created by Legislative Decree No. 1455 and its amendments and complementary norms, including those that have been reprogrammed within the framework of Decree of Urgency No. 026-2021 and Decree of Urgency No. 011-2022; likewise, for the part of the credits that have coverage of the Business Support Fund for MYPE, created by Decree of Urgency No. 029-2020 and strengthened by Decree of Urgency No. 049-2020 and its amendments, including credits that have been reprogrammed within the framework of Decree of Urgency No. 029-2021; of the Business Support Fund for MYPE or MIPYME of the Tourism Sector (FAE-TURISMO), created by Decree of Urgency No. 076-2020 and amendment and strengthened by Decrees of Urgency No. 091-2021 and No. 004-2022-; of the National Government Guarantee Program for Agrarian Business Financing, created by Decree of Urgency No. 082-2020 and its amendment; of the COVID-19 Guarantee Program, created by Law No. 31050 and the Business Support Program for micro and small enterprises (PAE – MYPE) created by Decree of Urgency No. 019-2021.

In this section, the portion of MIVIVIENDA mortgage credits granted from July 1, 2010, that have coverage of FONDO MIVIVIENDA, will be included.

2. Modify Annex No. 6 "Credit Report of Debtors - RCD", according to the following:

Incorporate into the Chart of Accounts of the RCD the analytical subaccounts of subaccount 8108.12 "Reprogrammed Credits – DU No. 011-2022" and analytical account 8404.05.21 "Guarantee granted by the National Government – Reprogrammed Credits Reactiva Perú Program – DU No. 011-2022".