On July 24, the Bank of the Republic of Colombia (BanRep, in Spanish) opened a public consultation on a draft regulation to amend current regulations on transitional liquidity support and transitional expansion operations instrumented with promissory notes. Interested parties may submit their comments until July 28, 2020, by clicking here.

The measure extends the deadline for fulfilling margin calls in transitional liquidity support operations. BanRep is required to inform the bank’s legal representative via a written communication about the additional value to be put in place. The entity then has five working days to deliver and endorse the additional securities in favor of BanRep in order to comply with the margin call.

The initiative seeks to exempt from the regulations governing transitory expansion operations any additional costs where promissory notes need to be substituted or replaced In those cases where the names of grantors or underwriters are on the BanRep’s list in the Asset Laundering and Financing of Terrorism Risk Management System (SARLAFT).