Rains in Peru: Banks will be able to reschedule loans for up to six months in emergency areas

The entities of the Financial system They have been empowered to adopt exceptional measures to be applied to the credits of retail debtors, who have been affected by events which have led to declarations of emergency statelike the recent rainy at the national level due to the presence of the Cyclone Yaku.

This was reported by the Superintendence of Banks, Insurance and AFP (SBS)after issuing a letter that implements the measure in favor of users who, for example, have seen their home or business compromised.

According to a press release from the institution, it is the Multiple Letter No. 12174-2023-SBS. In the text, it is explained that these measures will be assessed by each company in the financial system, according to the geographical scope it determines, and after analysis of the level of impact on its debtors.

According to SBSfinancial institutions can modify the contractual conditions of the retail credits (consumer, mortgage, microenterprise and small business), without this constituting refinancing (or a deterioration in the credit rating of the debtors).

“Insofar as they meet certain conditions, such as that on the date of the declaration of emergency or on the date of the rescheduling, the debtors have demonstrated, inter alia, adequate payment behavior; be able to extend the total duration of the aforementioned credits up to six months from the initial duration. Similarly, provisions are made for the prudential and accounting treatment of the said credits,” the agency specifies.

The official letter also clarified that financial institutions will have an exceptional period of up to 30 days after the unilateral modification to inform the customer and must comply with the other conditions contained in the market conduct management regulations of the financial system (SBS Resolution No. 3274-2017 and amendments).

“Customers who do not need to take advantage of this exceptional measure should contact their entity in order to cancel the rescheduling of the credit (maintaining the original conditions)”, noted the institution.

These exceptional measures can be applied, taking into account the critical situation that various regions of the country are going through, due to meteorological phenomena, and which have been declared in a state of emergency by the Executive power.

The intense rains recorded these days in northern Peru due to the effects of the Cyclone Yaku could have an impact on the prices of certain staple foods, which would have repercussions on inflation rate Monthly March, the director of monetary policy of the Central Reserve Bank (BCR) of Peru warned, carlos montoro.

“So far this month, there has already been an increase in lemon price about 19%; However, there are other products that have already reduced their price, such as potatoes, which already have a 27% discount, said the head of the monetary entity.

Moreover, another factor that could have an impact on inflation in March would be the avian flu, which affects the chicken production. “In chicken there has been an increase in bird flu and there has been less access to soybean meal, it is expected that in the coming months the impact of certain measures will be felt , such as importing fertile eggs and vaccinating birds, and that should reduce the price,” he said.