The Debtor Support Program (PAD), that has allowed more than 1.7 million debtors to redefine their credits with the financial sector, in the framework of the Covid-19 pandemic, will run until June 30 of next year.
The Financial Superintendency of Colombia (SFC) reported that the credit resources that have been redefined to date amount to about $ 33 billion represented in 1.9 million loans.
The PAD was designed with the purpose of providing financial institutions and debtors with tools so that, in accordance with their new economic reality, they could redefine the conditions of their credits.
These agreements include construction loans, corporate, business, factoring, financial / institutional, leasing, microenterprise, SME, official sector, rotating, TDC, drafts, free investment, vehicle, low amount, other consumption, for VIS, No VIS, and housing leasing, among others.
Although with the PAD the loan installments can be adjusted to the new payment capacity that the debtors have, the interest rate in the processes of redefining the credit conditions does not increase.
The financial superintendent, Jorge Castaño, explains that since last August 1, when it came into effect, the PAD has shown that it is a tool that “maintains an adequate balance between the redefinition of the conditions of credit operations in the face of the new economic reality of the debtors, the disclosure of the risk and compliance with the prudential requirements by the credit institutions ”.
Through External Circular 039 of 2020, the Superfinancial establishes that, for the process of granting new credits and for the redefinition of these, the entities may establish procedures with alternative information that allows them to obtain a reasonable perception and objective on the real or potential payment capacity of the debtor and that it recognizes additional variables on the future reactivation of the economic sector where it operates and its capacity to generate income.
Another factor in favor of the debtors is that according to information from Asobancaria, In recent months there have been reductions in interest rates, especially in credit cards for individuals by 2.2 percentage points (pps).
In the case of consumption without a credit card for individuals, the rate fell by 1.1 pps; low amount consumption at 2.2 pps; in ordinary credit it fell 2.4 pps; preferential credit, 2.3 pps; business credit card 0.4 pps; VID in pesos 0.2 pp; Vis in UVR, 1.6 pps and No VIS in pesos 0.7 pps.