BANKING AND FINANCIAL ALERT
The Central Reserve Bank of Peru adopts Circular on Interest Rates
On April 28, 2021, Circular Nº 0008-2021-BCRP (the “Circular”) was published in the Official Gazette El Peruano, whereby the Central Reserve Bank of Peru (the “BCRP”), among others: (i) established the maximum conventional compensatory and default interest rates applicable to the transactions of financial system companies in their consumer credit portfolios, low-value consumer credits (equal or less than 2 Tax Units (UITs)) and credits for small and micro-enterprises (the “Credit Transactions”); and, (ii) modified the maximum rates of conventional compensatory and default applicable to transactions between people outside the financial system.
The maximum conventional compensatory and default interest rates, depending on the currency agreed and the type of transaction, are as follows:
I. INTEREST RATES IN LOCAL CURRENCY (“LC”):
1. Conventional compensatory and default interest rates:
(i) Active and passive transactions of financial system companies:
(a) Transactions not subject to the debt readjustment system: maximum rate equivalent to two (2) times the average of the month-end observations of the average interest rates of the financial system for consumer loans in LC published by the Superintendency of Banking, Insurance and AFP (“SBS”). This rate shall be calculated semi-annually in May and November.
(b) Transactions subject to the debt readjustment system: Maximum rate calculated so that the actual cost of these transactions, including readjustment, is equivalent to the rate indicated in section (I)(1)(i)(a) above.
(ii) Transactions between people outside the financial system:
(a) Transactions not subject to the debt readjustment system: maximum rate equivalent to that indicated in section (I)(1)(i)(a) above for Credit Transactions in LC.
(b) Transactions subject to the debt readjustment system: Maximum rate calculated so that the actual cost of these transactions, including readjustment, is equivalent to the rate indicated in section (I)(1)(ii)(a) above.
2. Default interest rate:
(i) Transactions between people outside the financial system: maximum rate equivalent to 15% of the maximum conventional compensatory interest rate.
(ii) Transactions of the financial system companies: Maximum rate equivalent to that indicated in section I(2)(i) above.
II. INTEREST RATES IN FOREIGN CURRENCY (“FC”):
1. Conventional compensatory interest rate:
(i) Active and passive transactions of financial system companies: maximum rate equivalent to two (2) times the average of the month-end observations of the average interest rates of the financial system for consumer loans in FC published by the SBS. This rate shall be calculated semi-annually in May and November.
(ii) Transactions between people outside the financial system: Maximum rate equivalent to that indicated in section (II)(1)(i) above.
2. Default interest rate:
(i) Transactions between people outside the financial system: Rate equivalent to 15% of the maximum conventional compensatory interest rate.
(ii) Transactions of the financial system companies: Rate equivalent to that indicated in section II(2)(i) above.
The Circular shall come into force gradually: (i) from May 10, 2021 for all banking companies and for transactions between people outside the financial system; (ii) from June 1, 2021 for municipal savings banks; and (iii) from July 1, 2021 for all other companies in the financial system.
The maximum conventional compensatory and default interest rates established by the Circular do not apply to transactions regulated and supervised by the Superintendency of the Securities Market, as indicated in the Tenth Final Complementary Provision of Emergency Decree Nº 013-2020. In addition, the maximum conventional compensatory and default interest rates established in the Circular for transactions between people outside the financial system are applicable to transactions that are agreed upon from the validity of the Circular; while in the case of Credit Transactions, these shall govern for credits disbursed from their validity.
