Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Lima, 17 December 2020

S.B.S. Resolution No. 3155-2020

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators

WHEREAS:

That, numeral 4 of article 132 of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance – Law No. 26702 and its amendments (hereinafter, the General Law), establishes that in application of article 87 of the Political Constitution, the constitution of generic and specific portfolio provisions, individual or global preventive by groups or categories of credit, for the eventuality of unpaid credits, are forms by which the mitigation of risks for the saver is additionally sought;

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

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

That, by Supreme Decree No. 044-2020-PCM and its amendments, the National State of Emergency was declared as a consequence of the outbreak of the Coronavirus (COVID-19) and various exceptional and temporary measures have been ordered regarding the spread of COVID-19;

That, by Multiple Official Letters No. 10997-2020-SBS, No. 11150-2020-SBS, No. 11170-2020-SBS, No. 12679-2020-SBS, No. 13195-2020-SBS, No. 13805-2020, No. 14355-2020, No. 15944-2020-SBS and No. 19109-2020-SBS, exceptional measures applicable to modifications of the contractual conditions of credits to debtors affected by the state of emergency decreed by D.S. were established. No. 044-2020-PCM, due to the situation caused by COVID-19;

That, in order for the companies of the financial system to constitute provisions to reflect the real deterioration of the debtor, due to the reprogrammings and other measures ordered by this Superintendency, it is necessary to modify the Regulation;

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

That, likewise, it is necessary to modify the Manual of Accounting for Companies of the Financial System, in order to adapt it to the provisions indicated above;

That, in order to gather the opinions of the public on the proposed, the prepublication of the draft regulation was ordered on the electronic portal of the Superintendency, under the provisions of Supreme Decree No. 001-2009-JUS;

With the approval of the Deputy Superintendencies of Banking and Microfinance, Risks, Economic Studies and Legal Advice; and,

In use of the powers conferred in numerals 7 and 9 of
article 349 of the General Law, and on the basis of the exceptional conditions provided in
article 14 of Supreme Decree No. 001-2009-JUS and its amendments;

RESOLVES:

Article One.- Incorporate as Eighth Final and Transitory Provision in the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 11356-2008 and its amendments (the Regulation), the following:

“EIGHTH.- Reprogrammed Credits - COVID 191

The companies of the financial system, for COVID-19 reprogrammed credits, accounted as Reprogrammed Credits - Health Emergency State, in accordance with the provisions issued by the Superintendency, must apply the following:

1. The reprogrammed credits of debtors with Normal classification are considered debtors with credit risk higher than Normal, corresponding to them the credit risk level With Potential Problems (CPP). To these credits, specific provisions corresponding to the CPP category are applied, in accordance with numeral 2.1. of Chapter III of this Regulation.

The provisions indicated in the previous paragraph are applicable to consumer, microenterprise and small business credits.

2. For accrued interest (accounted in account 1408) of reprogrammed credits, in current accounting situation, corresponding to the consumer, microenterprise and small business credit portfolio, for which the client has not made the payment of at least one complete installment that includes principal in the last six months at the close of the accounting information, a provision requirement corresponding to the Deficient risk category will be applied, in accordance with numeral 2.1. of Chapter III of this Regulation.

[1] Provision repealed as of 25.12.2021 by SBS Resolution No. 3922-2021 of 23/12/2021.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239 3

3. The provisions indicated in numerals 1 and 2 do not affect the classification of the debtor in the Debtors' Credit Report.

4. From the effective date of SBS Resolution No. 3155-2020, accrued interest not collected at the date of reprogramming, recognized as income, which is capitalized as a result of the reprogramming, must be reversed and recorded as deferred income, accounted as income based on the new term of the credit and as the respective installments are paid.

5. In relation to payments and cancellation, the provisions established in literal b) of numeral 5.2 of Chapter I of this Regulation must be considered.

6. Companies may not, in any case, generate profits or generate better results from the reversal of provisions, and must reassign them for the constitution of mandatory specific provisions.

7. The provisions indicated above do not apply in the following cases:

a) if the operation corresponds to agricultural credits with payments less frequent than monthly; or,

b) if the operation corresponds to any government program, for which the corresponding rules or specifications must be applied.

The Superintendency may establish the specific guidelines, in order to specify the application of the aforementioned provisions."

Article Two.- Amend the Accounting Manual for Companies of the Financial System, approved by SBS Resolution No. 895-98 and its amendments, in accordance with the Annex attached to this Resolution, which is published on the Institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001- 2009-JUS.

Article Three.- Suspend the application of article 7 of the Regulation for the Administration of the Overindebtedness Risk of Retail Debtors, approved by SBS Resolution No. 6941-2008 and its amendments. Companies may not, under any circumstances, generate profits or generate better results from the reversal of provisions, as a result of the suspension of the requirement for provisions for overindebtedness risk, and must reallocate them for the constitution of credit provisions.

Article Four.- Effective date and adaptation period

1. This Resolution enters into force on the day following its publication in the official newspaper El Peruano, except for the provisions of article two, which enters into force as of the information corresponding to the month of December 2020.

2. An adaptation period is granted for the constitution of provisions for the principal of the reprogrammed credits referred to in numeral 1 of the first paragraph of the Eighth Final and Transitory Provision of the Regulation, in accordance with the following, unless authorized by this Superintendency:

2.1. As of 31.12.2020, they must constitute, at a minimum, the provisions for those credits for which the client has not made the payment of at least one full installment, including principal, in the last six months as of 31.12.2020.

2.2. As of 31.12.2021, they must constitute all provisions, for which the company must define a schedule that allows timely recognition of provisions during fiscal year 2021.

3. Provisions for accrued interest (recorded in account 1408), referred to in numeral 2 of the first paragraph of the Eighth Final and Transitory Provision of the Regulation, must be constituted as of 31.12.2020, unless authorized by this Superintendency.

4. For the application of numeral 2 of the first paragraph of the Eighth Final and Transitory Provision of the Regulation, and of numeral 2.1 of this article, the identification of the credits that will be subject to these provisions is carried out on the basis of the information as of the month prior to the reporting date; and the required specific provision is calculated on the balance of these credits as of the reporting month.

Register, communicate and publish

SOCORRO HEYSEN ZEGARRA
Superintendent of Banking, Insurance and
Private Administrators of Pension Funds

ANNEX
AMENDMENTS TO THE ACCOUNTING MANUAL FOR COMPANIES OF THE FINANCIAL SYSTEM

I. Amend Chapter II "Financial Statements and Complementary Information" of the Accounting Manual for Companies of the Financial System, in accordance with the following:

Replace in the Grouping Standards, in the Statement of Financial Position - Form A, in Assets, in the item of Outstanding credits, in accordance with the following:

1401+1408-(2901.01.01+2901.01.08+2901.02.01+2901.07.02.01+2901.08.01.01)

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

1. Incorporate the following analytical accounts into account 1409 "(Provisions for credits)":

1409.02.07	Specific provisions for COVID-19 reprogrammed portfolio
1409.02.07.01	Principal
1409.02.07.02	Interest
1409.03.07	Specific provisions for COVID-19 reprogrammed portfolio
1409.03.07.01	Principal
1409.03.07.02	Interest
1409.13.07	Specific provisions for COVID-19 reprogrammed portfolio
1409.13.07.01	Principal
1409.13.07.02	Interest

2. Incorporate the following analytical accounts into account 4302 "Provisions for uncollectibility of credits":

4302.02.07	Specific provisions for COVID-19 reprogrammed portfolio
4302.02.07.01	Principal
4302.02.07.02	Interest
4302.03.07	Specific provisions for COVID-19 reprogrammed portfolio
4302.03.07.01	Principal
4302.03.07.02	Interest
4302.13.07	Specific provisions for COVID-19 reprogrammed portfolio
4302.13.07.01	Principal
4302.13.07.02	Interest

3. Incorporate as the last paragraph in the description of account 1409 “(Provisions for loans)” the following:

The specific provisions for the COVID-19 reprogrammed portfolio in accordance with the provisions established in the Eighth Final and Transitory Provision of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, are recorded in analytical accounts 1409.02.07, 1409.03.07 and 1409.13.07, with the corresponding offsetting entries in analytical accounts 4302.02.07, 4302.03.07 and 4302.13.07, respectively, and must

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239 6

the provisions constituted for principal be broken down from those constituted for interest,

4. Incorporate in subaccount 2901.01 “Income from interest and commissions” the following analytical account, as well as its description:

2901.01.08
Reprogrammed loans - Health Emergency

In this analytical account are recorded the interest, commissions and deferred expenses resulting from the capitalization in the reprogramming of loans accounted for as Reprogrammed Loans-Health Emergency in subaccount 8109.37.

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

1. Modify Annex No. 5 “Report on Classification of Debtors and Provisions” and its methodological notes, in accordance with the following:

a. Replace in section V “Balance Sheet Figures” of the section “RECONCILIATION OF ANNEX No. 5 WITH THE BALANCE SHEET FIGURES”, the Direct Loans box, in accordance with the following:

DIRECT LOANS
Direct loans: 1401+1403+1404+1405+1406-2901.01-(2901.02-2901.02.07)-2901.07.02-2901.08.01+(1408.02(p)+1408.03(p)+1408.13(p))

b. Replace in section V “Balance Sheet Figures” of the section “RECONCILIATION OF ANNEX No. 5 WITH THE BALANCE SHEET FIGURES”, the “Specific provisions” box for Direct Loans, in accordance with the following:

Specific provisions
V19=1409.02.01+1409.02.07+1409.03.01+1409.03.07+ 1409.04.01+1409.05.01+1409.06.01+1409.07.01+ 1409.08.01+1409.09.01+1409.10.01+1409.11.01+ 1409.12.01+1409.13.01+1409.13.07

c. Replace the first paragraph of the general description of the Methodological Notes of Annex No. 5 and its complementary annexes, in accordance with the following text:

“For the preparation of Annexes No. 5, 5-A, 5-B and 5-D, the information corresponding to the principal amount of direct loans as well as indirect loans shall be included, excluding accrued interest and commissions on outstanding loans (except those corresponding to the interest referred to in the

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Eighth Final and Transitory Provision of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions), interest and commissions collected in advance, income and commissions deferred resulting from the refinancing and restructuring of loans and the gain on the financed sale of foreclosed and recovered assets, as applicable.”

d. Incorporate as the fourth paragraph in the general description of the Methodological Notes of Annex No. 5 and its complementary annexes, the following text:

COVID-19 reprogrammed loans referred to in the Eighth Final and Transitory Provision of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions

In the case of the COVID-19 reprogrammed loans referred to in the first paragraph of the Eighth Final and Transitory Provision of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, it shall be reported as follows:

• The principal referred to in numeral 1 must be reported with CPP classification.

• The accrued and uncollected interest referred to in numeral 2 must be reported with Deficient classification.

• The required specific provisions referred to in numerals 1 and 2 shall follow the guidelines corresponding to the General Treatment, as indicated in numeral 14 of the notes to Annex No. 5.”