Regulatory Alerts2022-04-11 | NRP-33Added · Updated
Technical Standards for the Holding and Liquidation of Extraordinary Assets of Reciprocal Guarantee Companies
The Central Reserve Bank of El Salvador issues technical standards requiring Reciprocal Guarantee Societies to liquidate extraordinary assets within two years of acquisition, with a possible 180-day extension authorized by the Superintendence of the Financial System. If assets remain unsold after the holding period, they must be provisioned as a loss and sold via public auction within three years, with auction prices potentially reduced by up to 20%. The standards also establish procedures for societies to request authorization to conserve or donate these assets for community, cultural, or internal use, and repeal the previous 2003 regulations effective May 3, 2022.
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