Bank Credits: Collection of Penalties Prohibited

In El Salvador, banks will not be able to charge any kind of penalty to clients who, due to the crisis of the covid-19, fail to pay their credit quotas.

Tuesday, March 24, 2020

They were approved "Temporary Technical Norms to Face Noncompliance’s and Contractual Obligations" derived from the emergency were approved, which will avoid that, during the validity of the emergency, the credit risk category of Salvadorans is affected, therefore, no penalty will be charged for non payment. With these rules will also allow the granting of credits, consolidation, restructuring and refinancing of debts in favorable conditions for those affected by the COVID-19 pandemic, reported the Central Reserve Bank (BCR).

See "Covid-19: Forecast for Financial Activity"

The official statement adds that "... People will be able to approach financial institutions to find solutions to facilitate the payment of their debts. The temporary rules allow support for natural and legal persons with difficulties in paying insurance premiums, derived from the pandemic, so that insurance coverage is not lost."

The BCR said that the temporary rules will be in force for 180 days from March 19, 2020.

Coronavirus: How are the outlook for businesses in El Salvador changing?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months.

Click here to request access to this report.



More on this topic

$515 Million Approved for Healthcare System

April 2020

The IMF approved a loan in favor of the Panamanian government, whose funds will be used to finance health expenses and support the vulnerable population affected by the covid.19

The International Monetary Fund (IMF) approved Panama's request for emergency financial assistance under the Rapid Financing Facility (RFF) of approximately $515 million to meet urgent balance of payments needs arising from the outbreak of the covid-19 pandemic, the international body reported.

Loans in Panama: 90-day Moratorium

April 2020

In the third debate, the National Assembly approved a bill that grants debtors a 90-day extension of time for payment of credits granted by banking, cooperative and financial institutions.

According to the law that must be sanctioned or banned by President Cortizo, once the term of the moratorium set forth in this law has expired, creditors, in common agreement with the debtor, must agree on the conditions for the unpaid debt to be prorated, to be paid within 24 months.

Panamanian Banks Give Extensions to Clients

March 2020

In response to the country's health crisis, 15 banks have granted a 90-day extension for their customers to make their personal credit card, home mortgage, vehicle and personal loans.

Until March 31st, the financial institutions that confirmed that had granted the extension to their clients are BAC Credomatic, Banco General, Banistmo, Banco Nacional, Global Bank, Multibank, St.

Banking Sector Makes Collections More Flexible

March 2020

In Guatemala, banks will grant deferrals and will wait for loans whose debtors are directly or indirectly affected by the spread of the coronavirus, specifically those that are not more than one month late on February 29.

The Guatemalan Banking Association (ABG) reported on March 21 that these decisions were made with the objective of supporting clients and users of banking services, who will be affected by the spread of covid-19.

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