Refinancing and/or Rescheduling of Credit Operations

Refinancing and/or Rescheduling of Credit Operations

  • Purpose: Establishes that Financial Institutions (financial intermediation entities and financial leasing companies) must process, assess, agree upon, and approve the refinancing and/or rescheduling of credit operations for borrowers who voluntarily request it.
  • Grounds: Deterioration of repayment capacity as a result of social conflicts in the country.
  • Conditions:
      • Refinancing does not apply to financial leasing operations.
      • The term shall be determined by each Financial Institution.
      • Refinancing or rescheduling shall not modify the borrower’s risk qualification.
      • Capital repayments may be made at any time, in accordance with applicable ASFI regulations.
      • The new repayment schedule must be aligned with the borrower’s repayment capacity.
  • Grace and Deferral Periods: Financial Institutions may grant grace and/or deferral periods without charging principal, interest, insurance, fees, or other charges; such amounts must be collected three months after the end of the grace/extension period, prorated over the subsequent installments.
      • Grace period: Up to 6 months from the approval of the refinancing and/or rescheduling.
      • Deferral period: The borrower must request and processes the refinancing and/or rescheduling within 30 calendar days from June 8, 2026 (date of publication of the Supreme Decree), which may be extended by each Financial Institution at its discretion.
  • Costs: Financial Institutions must bear the costs of documents required for refinancing and/or rescheduling, without passing the cost on to the borrower.
  • Procedure: Each Financial Institution must adapt its procedures and publish the applicable requirements for the refinancing and/or rescheduling on its websites.
  • Insurance:
      • Insurance companies must adjust the payment of premiums for mortgage life and disability insurance and for insurance covering loan collateral, without cancelling coverage.
      • Coverage under mortgage life insurance policies and loan collateral guarantees shall remain in force during grace and/or deferral periods, without surcharges or any modifications.

Contacts and Further Information

For more information regarding the content of Supreme Decree No. 5630, please contact our legal team: abogados@baqsn.bo