Aggregated News From Investment Management Regulators

CMF issues Circular Letter on the treatment of provisions and information requirements for Covid-19 loans

Report/Flag

Please complete the required fields.



April 30, 2020 – The Board of the Financial Market Commission (CMF) approved to issue today Circular Letter No. 2,252. The document contains instructions for banking entities regarding Covid-19 loans from the Guarantee Fund for Small and Medium-Sized Entrepreneurs (FOGAPE, for its Spanish acronym). Said instructions will be in force starting today and until October 31, 2021.

This Circular Letter covers the following topics:

  • Exceptional measures for the treatment of provisions for loans in installments of the commercial portfolio.
  • Classification of debtors and calculation of arrears.
  • Establishment of procedures for checking debtor eligibility.
  • Destinations of funding.
  • Regular submissions of information to the CMF.

For loans granted under the FOGAPE Covid-19 program, the provisions of the debtor’s rescheduled installment loans which meet the established conditions may remain unchanged during the grace or rescheduling period granted by the financial institution. The maximum period is six months. This measure facilitates the conditions for providing financing and, at the same time, safeguards the prudential aspects of credit risk that must be complied with by all financial institutions participating in the FOGAPE Covid-19 credit lines.

The document also details the information that the institutions must submit to the Financial Market Commission to adequately monitor the evolution of loan granting, rates registration, and the main features of these operations.

Likewise, the CMF will require procedures for verification of loan granting requirements and commitments related to the use of these resources. This is pursuant to the Law and Regulations of the FOGAPE Covid-19 program and shall be made available to the Commission.

The text of Circular Letter No. 2,252 is available on the CMF website.

Source link

Regulator Information

Recent Articles

SEC Charges Eagle Bancorp and Former CEO with Failing to Disclose Related Party Loans

Washington D.C., Aug. 16, 2022 — The Securities and Exchange Commission today charged Eagle Bancorp, Inc.

Warning regarding unregulated entities

See a PDF of the Warning published by the Cyprus Securities and Exchange Commission (CySEC CY) here: Source link

Announcement for a Case of Carrying out Securities Business without Authorisation

In line with the Capital Market Authority's (CMA) responsibilities to protect citizens and investors from unfair and unsound practices, and aiming to achieve fairness,...

OCC Hosts Risk Governance and Compliance Risk Workshops in Minneapolis

  • +1Bank Management, Banker Education, Board of Directors & Management, Community Banks
News Release 2022-99 | August 15, 2022 Share This Pag

Get the latest from Regulatory.News in your inbox!

×