LatinNews Daily - 29 September 2020

In brief: Uruguay relaxes credit restrictions

* The financial services superintendency of Uruguay’s central bank (BCU) has temporarily relaxed certain debt-restructuring and debtor-classification conditions, in response to the coronavirus (Covid-19) pandemic. According to a BCU transitory provision, credit lines will qualify for restructuring if they are agreed by 31 December and are taken out on the basis of financial difficulties sustained “exclusively, in direct or indirect form” during the sanitary crisis declared by the government on 13 March. Should certain other qualifying conditions be met, these will be eligible for a grace period on capital amortisation of up to six months. However, they will not be eligible for capital reduction. Further key modifications include that creditors evaluating debtor repayment capacity for commercial loans cannot adjust risk categories from those assigned on 29 February, unless that debtor was in arrears by that date.

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