Regulatory Alerts2024-10-31 | NCF-07Added · Updated
Technical Standards for the Registration of Extraordinary Assets of Reciprocal Guarantee Societies
The Central Reserve Bank of El Salvador issued Technical Standards NCF-07 to establish uniform accounting practices for the registration, valuation, and removal of extraordinary assets acquired by Reciprocal Guarantee Societies. The regulations mandate specific accounting treatments for assets acquired via deed in payment or judicial adjudication, require 100% provisioning if liquidation deadlines expire, and define procedures for sales, transfers, or destruction of these assets. These standards replace previous regulations and become effective on November 15, 2024, ensuring compliance with financial supervision laws.
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