On June 8, the Central Reserve Bank of Peru (BCR, for its acronym in Spanish) issued Circular 0021-2020-BCRP announcing new Repo operations for debt payment rescheduling. The idea is to reduce interest rates on rescheduled debts. The circular states that regarding Repo operations, financial institutions may temporarily sell quality credit portfolios and foreign currency first to the BCR but these must be repurchased when the operations mature.

In addition, the BCR established that the rescheduling period must not be less than 6 months nor over 48 months, and interest rates must be lower than those originally agreed. The operation will be carried out only when the companies in the financial system refinance a certain amount of loans with their clients, at least the amount equivalent to that assigned in the Repo.

The measure includes banks, finance companies, municipal and rural banks, SMEs and cooperatives authorized to receive funds from third parties. It includes all types of credit including vehicular, mortgage or consumer, as well as working capital, for suppliers, goods purchase or capital goods.

On the other hand, the Banking, Insurance and Pension Funds Superintendency (SBS, in Spanish), issued SBS Resolution No. 1537-2020 extending the suspension of the calculation of administrative terms concerning the SBS’s functions and attributes until June 30. 

The regulations suspend the calculation of administrative deadlines including those established for the delivery of information that may be required virtually, and the periods of limitation and deadlines until the fines imposed can be collected.