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Chilean Financial Market Commission Announces a Package of Measures to Facilitate Credit Flow to Both Companies and Individuals / Time Extension to File Financial Information Due to COVID-19 Outbreak 

by Diego Peralta, Cristián Figueroa, Diego Lasagna and Matías Garcés

Published: March, 2020

Submission: March, 2020

 



Financial Market Commission Announces a Package of Measures to Facilitate Credit Flow to Both Companies and Individuals


By Diego Peralta and Diego Lasagna


 


On March 23, 2020, the Financial Market Commission’s Council (“CMF”) approved new measures destined to grant more flexibility to the financial system, in the context of the coronavirus Covid-19 global outbreak.


Such measures can be summarized as follows:


  1. Financial coverage due to postponed installments: The postponed banking mortgage loans installments (up to a maximum of 3 installments) will not be considered renegotiations for purposes of establishing financial coverage (provisiones).
  2. Financial coverage due to consumer loans extensions: The Banks can extend the maturity date of the consumer loans granted to small and medium enterprises (SME’s) and individuals for up to 6 months, without such extension being considered as a renegotiation for purposes of establishing financial coverage.
  3. Mortgage guarantee surpluses: The CMF will issue new regulations, which will allow these surpluses to be used to secure loans granted to SME’s.
  4. Assets received in payment: An 18-month extension is authorized in the term that banks have to transfer assets received in payment (generally 12 months).
  5. Derivatives variation margin: The CMF provided an amendment to the regulation on the cash amount that banks must collateralize for the derivatives variation margin that are netted on a bilateral basis, permitting to compensate the derivative amount with the collateralized amount in favor of the relevant counterparty.

 


The CMF is also reviewing the Basel III standards1 implementation schedule, with the purpose of avoiding increasing the negative effects derived from the current economic cycle.


 


Link to the article:https://www.carey.cl/en/financial-market-commission-announces-a-package-of-measures-to-facilitate-credit-flow-to-both-companies-and-individuals/


 


Time Extension to File Financial Information Due to COVID-19 Outbreak

By Cristián Figueroa and Matías Garcés


 


Given the sanitary measures that the Chilean authorities have adopted as a result of the worldwide outbreak of Severe Acute Respiratory Syndrome from corona virus-2 (SARS-CoV-2) triggered by the disease of coronavirus 2019, or Covid-19, rated pandemic by the World Health Organization; and taking into account the possible effects of said situation on the financial markets and other entities monitored, on 24 March 2020, the Financial Market Commission (“CMF”), pursuant to the responsibilities the law vests on it, issued Official Circular No. 1142 (the “Official Circular”) to extend in 15 additional calendar days the maximum timeframe set to file the annual reports and annual audited financial statements that supervised entities must disclose and file with the CMF during March 2020.


Notwithstanding, the Official Circular states that the Board of Directors or the Administrator of each of the supervised entities shall assess the specific circumstances affecting their personnel and external auditing firm, to disclose and send to the CMF, as soon as practicable, the foregoing information. If because of that assessment the conclusion is that the entity shall be prevented from meeting their duty of information within the new timeframes granted pursuant to this Official Circular, the matter shall be informed to the CMF forthwith, stating, also, the circumstances leading to such a conclusion.


Finally, it states that the instructions set forth in the Official Circular shall enter into force and effect on the date hereof, i.e. 24 March 2020.


 


Link to the article:https://www.carey.cl/en/time-extension-to-file-financial-information-due-to-covid-19-outbreak/


 


 


 

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