On June 19, 2020, in Nicaragua, Decision No. CD-SIBOIF-1181-1-JUN19-2020L was promulgated – Regulation for the Granting of Short-term Credit score Circumstances which goals to ascertain momentary credit score situations that monetary establishments may grant to debtors of bank cards, automobile credit, private credit, residence mortgages, microcredits, SMEs, agricultural, livestock, industrial and industrial in all sectors of the economic system.
The Board of Administrators of the Superintendency of Banks and Different Monetary Establishments of Nicaragua, because the physique empowered to difficulty normal rules to strengthen and protect the safety and belief of the general public in establishments beneath the supervision, inspection, surveillance and oversight of the Superintendency of Banks, issued this new Norm to mitigate the adverse results that might be generated within the face of the worldwide disaster on account of COVID-19.
What can monetary establishments do now?
Monetary establishments may defer installments and/or prolong the initially agreed cost time period of the referred credit, having to hold out a person analysis of every case based mostly on the establishment’s insurance policies with out modifying the initially agreed situations except these are for the good thing about the debtor and beneath the next particular situations:
- They are going to be granted solely to these loans that as of March 31, 2020, had been labeled as A or B, that had been registered as present, prolonged, or restructured loans.
- The credit topic to the rule will preserve the classification they’d till March 31, 2020. In different phrases, by having an excellent report, your report won’t be affected, and you’ll preserve the score.
- Loans modified per the provisions of this Regulation will preserve the chance score they’d as of March 31, 2020, so long as the debtor doesn’t breach the brand new agreed situations.
- Monetary establishments, based mostly on the provisions established of their contracts and the corresponding authorized danger administration, should assess whether or not or to not modify the unique contracts to use the factors established on this Regulation, supporting their determination within the credit score file.
Likewise, monetary establishments may grant preliminary grace intervals of as much as 6 months of principal and/or curiosity throughout the time period extensions that they grant to their debtors.
Regarding Credit score Playing cards, the monetary establishment may negotiate the steadiness of the cardboard beneath new extra favorable situations by private credit score. Because of this, inside the advantages of this Regulation, decrease charges may apply.
Likewise, commissions won’t be utilized to the modification of credit, aside from authorized, notary and registry bills, amongst others paid to 3rd events. Nor will the appraisal replace be required, when relevant.
It is very important spotlight that, as the principle restriction, the Regulation establishes that these momentary credit score situations may profit the debtor in all its obligations on a single event, however won’t apply to these new credit granted after March 31, 2020.
Lastly, all of the requests made by the debtors in accordance with the situations established to use this Regulation, along with their respective formalizations and registrations within the monetary establishment’s techniques, could have a most date of December 31, 2020.