LA PAZ, Oct. 2 (Xinhua) -- The Bolivian government on Wednesday approved a debt refinancing decree which allows thousands of debtors to reschedule their bank credit to help them weather economic difficulties caused by recent natural disasters and social conflicts.
The measure "aims to help debtors regain control of their finances, thus stabilizing their businesses or family economies," primarily for vulnerable sectors such as microentrepreneurs and trade associations who have difficulties in meeting correspondent financial obligations, Economy and Public Finance Minister, Marcelo Montenegro, told a press conference Wednesday.
Operations remaining up to two years may be rescheduled for a period not exceeding five years, and restructuring of the rest of the credits will be addressed by the regulations issued by the Authority of Financial System Supervision accordingly, said the minister.
The regulation also includes grace periods, unchanged risk ratings, and the possibility for delinquent debtors to have more time to avoid potential legal action or enforcement measures, he said.
As stipulated by the decree, "financial intermediaries and leasing companies must address and evaluate the financing, refinancing, and/or rescheduling requests of debtors who voluntarily request it," Bolivian President Luis Arce also said in a post on social media. ■
