Deferred Payment of Credit Obligations: New Economic Measures
24 marzo 2020

On March 24, the Monetary and Financial Policy and Regulation Board issued Resolution No. 569-2020-F, establishing an extraordinary deferral of credit obligations by public and private financial sector entities under the control of the Banking Superintendency. The resolution will be in force for 120 days from its approval. In other news, the Economic Regime Commission is working on an initiative to tackle the economic crisis generated by the coronavirus.

The regulations stipulate that the “extraordinary deferment of credit obligations” will be understood as the process by which financial entities (public or private) refinance, restructure or renew credit operations. Financial entities may also establish specific policies and procedures to manage and follow up extraordinary deferrals.

Similarly, the regulations state that this type of entity may modify the conditions of credit operations (prior notification to the client) of the different segments, as well as refinancing their operations under the same conditions indicated in the previous transitional provisions; in all cases, the deferral period is extended to at least 90 days, maintaining the rating that the credit had at the time of issuing this resolution.

The Superintendency has clarified that any payments and installments of principal and interest for extraordinarily deferred financial obligations shall not cause any interest to be charged on the moratorium, nor any expenses, surcharges or fines during the period agreed upon with the debtor.

The Economic Regime Committee also approved a resolution containing measures to tackle the economic and social crisis affecting the country due to the spread of the coronavirus. The proposals presented envisage encouraging businesses to operate mostly through digital platforms, exempting them from VAT payments to promote the widespread use of digital resources. The document will now go to the Plenary of the National Assembly to be modified and from there sent to the Executive Branch for urgent enactment.